Update, October 2026: The deadlines in the original version of this article have passed: Nov. 3, 2025 for the March 2025 South Texas floods and Feb. 2, 2026 for the July 2025 Hill Country floods. This page now explains how IRS disaster tax relief works and keeps the 2025 details below for reference. It is general information, not tax advice.
IRS disaster tax relief gives people and businesses in a declared disaster area extra time to file returns, pay taxes, and take other time-sensitive tax actions. After a Texas flood or storm, relief depends on where you live, what the IRS announces for that disaster, and whether insurance reimbursed your losses.
- The IRS announces disaster tax relief after a FEMA disaster declaration or, for qualified state-declared disasters, a Governor’s request, then lists the covered counties and new deadlines (IRS).
- Taxpayers with an IRS address of record in a covered area generally receive filing and penalty relief automatically; those outside the area whose records are inside may call 866-562-5227 (IRS).
- Relief postpones returns, payments, and other acts listed in the regulations and Rev. Proc. 2018-58; W-2 and 1099-series information returns and most employment tax deposits are generally not included (IRS).
- For disasters declared after July 24, 2025, the Filing Relief for Natural Disasters Act expanded mandatory postponements and lengthened the automatic extension from 60 to 120 days (IRS Publication 547).
- Personal casualty losses are generally deductible only when tied to a federally declared disaster and, beginning in 2026, certain state-declared disasters, and the deduction is reduced by insurance reimbursements (IRS).
- As of the IRS’s Texas page (last updated July 9, 2026), the most recent Texas relief listed was TX-2025-04, which expired Feb. 2, 2026.
How Does IRS Disaster Tax Relief Work?
Before the IRS can authorize disaster tax relief, the President must declare a major disaster or, for qualified state-declared disasters, a Governor must request relief from the IRS. When the declaration includes at least one county designated for FEMA’s Individual Assistance program, the IRS automatically provides administrative relief and then publishes a news release listing the covered counties and the new deadline (IRS).
The postponement period generally starts on the first day of the disaster. For the March 2025 South Texas floods, for example, it began March 26, 2025, and any covered deadline that fell inside the period moved to the new date.
How Can I Tell Whether My Texas County Qualifies?
The IRS’s Tax relief in disaster situations page and its Around the nation page for Texas list each disaster, the covered counties, and the deadlines. FEMA’s declaration page for the disaster shows the declared counties as well.
Check the date on any news release before relying on it. IRS releases may not be updated after they are issued, and the covered-county list can grow. The July 2025 Texas relief, for example, was expanded three times after it was first announced (IRS).
Who Counts as an Affected Taxpayer?
Under Treasury regulations, affected taxpayers include:
- Individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is, in the covered disaster area.
- Taxpayers whose records needed to meet a postponed deadline are in the covered area, even if they live elsewhere.
- Relief workers affiliated with a recognized government or philanthropic organization assisting in the covered area.
- Visitors to the covered area who were killed or injured because of the disaster.
The IRS automatically applies relief to taxpayers whose address of record is in the covered area. Taxpayers outside the area whose records are inside it can call the IRS disaster hotline at 866-562-5227 to request relief, and taxpayers who moved after filing can update their address with the IRS by calling the same number or filing Form 8822 (IRS).
Which Tax Deadlines Can Be Postponed?
Relief typically postpones individual and business income tax returns and payments, estimated tax payments, quarterly payroll and excise tax returns, retirement-account contribution deadlines, and other acts listed in the regulations and Rev. Proc. 2018-58.
Unless an act is specifically listed, the postponement generally does not cover information returns in the W-2, 1094, 1095, 1097, 1098, or 1099 series, or employment and excise tax deposits. In the Texas releases, the IRS instead abated penalties on deposits due in a short window at the start of the disaster when the deposits were made by a set date. A filing extension also doesn’t extend the time to pay: the TX-2025-04 release notes that payments for returns on extension don’t get additional time (IRS).
For disasters declared after July 24, 2025, the Filing Relief for Natural Disasters Act expanded the mandatory postponement of certain deadlines and increased the automatic extension for certain federal tax deadlines from 60 to 120 days, including for qualified state-declared disasters (IRS Publication 547).
How Do Casualty Losses Work After a Flood?
Individuals can generally deduct personal casualty losses only when they are attributable to a federally declared disaster, and beginning in 2026 the deduction also covers certain state-declared disasters (IRS). Insurance changes the math: a loss is generally reduced by any insurance or other reimbursement, so the deductible amount reflects only what insurance did not pay. Additional limits can apply, including a per-casualty reduction and a percentage of adjusted gross income, with different figures for qualified disaster losses (IRS Publication 547).
Taxpayers in a federally declared disaster area can choose to claim the loss on the return for the year of the disaster or the prior year. The election deadline is six months after the due date, without extensions, of the disaster-year return. For 2025 disasters, the IRS gave Oct. 15, 2026 as that date for individuals, and affected taxpayers put the FEMA disaster declaration number, such as 4871-DR or 4879-DR, on the return. A tax professional can explain how these rules apply to a specific situation.
What Records Help After a Disaster?
Records commonly requested after a flood or storm include photos and video of the damage, receipts and repair estimates, inventories of damaged belongings, insurance claim paperwork and settlement statements, and records of any FEMA or other government assistance. Because the amount an insurer pays can affect a casualty loss, it helps to keep claim paperwork with your tax records.
If tax records were lost, the IRS waives the usual fee for copies of previously filed returns for affected taxpayers and provides expedited return transcripts free of charge through its disaster hotline (IRS).
Whether flood damage is covered depends on the policy. Standard homeowners policies commonly exclude it, and separate flood coverage may be available. An Inszone Insurance Specialist can walk through how homeowners, flood, renters, and commercial property coverage may apply to your situation.
What Other Relief May Be Available?
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- Penalty abatement: If you receive a late filing or late payment notice for a period covered by relief, call the number on the notice to ask the IRS to abate the penalty. Taxpayers who don’t qualify for disaster relief may still qualify for reasonable cause penalty relief.
- Payment plans: Missed installment agreement payments during the postponement period don’t cause the agreement to default, though interest and late-payment charges continue to accrue.
- Retirement accounts: A special disaster distribution may avoid the additional 10% early distribution tax, with the income taken over three years (Form 8915-F).
- Relief payments: Qualified disaster relief payments are generally excluded from gross income, to the extent insurance or other sources haven’t paid the expense (Publication 525).
Legacy information: What the IRS Postponed After the 2025 Texas Floods
When South Texas flash floods struck in March 2025, the IRS gave affected taxpayers extra time. News release TX-2025-03 (June 10, 2025) moved filing and payment deadlines that fell on or after March 26, 2025 to Nov. 3, 2025, so residents and business owners in the FEMA-declared counties of Cameron, Hidalgo, Starr, and Willacy could focus on cleanup and repairs before settling up with the IRS. That deadline has passed.
Who qualified
- Residents, business owners, and relief workers in Cameron, Hidalgo, Starr, and Willacy counties (FEMA DR-4871).
- Anyone whose tax records were stored in those counties, even if they lived elsewhere.
What was postponed to Nov. 3, 2025
- 2024 individual income tax returns and payments due April 15, 2025, along with 2024 IRA and HSA contributions.
- 2025 estimated tax payments due April 15, June 16, and September 15.
- Quarterly payroll and excise tax returns (such as Forms 941 and 720) due April 30, July 31, and October 31.
- Calendar-year corporation and fiduciary returns and payments due April 15, and calendar-year tax-exempt organization returns due May 15.
- Penalties on payroll and excise tax deposits due between March 26 and April 10, 2025 were abated if the deposits were made by April 10.
A second release, TX-2025-04 (July 9, 2025, later expanded to cover additional counties), postponed deadlines to Feb. 2, 2026 for taxpayers in Texas Hill Country counties affected by the July 2025 floods (FEMA DR-4879). That deadline has also passed.
Questions About How Insurance May Respond?
Not sure how your homeowners, flood, renters, or commercial property coverage may respond after a flood or storm? Talk with an Inszone Insurance Specialist.
Frequently Asked Questions
What is IRS disaster tax relief?
IRS disaster tax relief is a postponement of certain filing, payment, and other tax deadlines for individuals and businesses affected by a declared disaster. The IRS announces the covered counties and the new deadline for each disaster, and taxpayers with an address of record in the covered area generally receive relief automatically.
How do I find out if my Texas county qualifies for IRS disaster relief?
The IRS lists each disaster, its covered counties, and its deadlines on the Tax relief in disaster situations page and on the Around the nation page for Texas. FEMA’s page for the disaster shows the declared counties as well. Check the release date, since counties can be added after the first announcement.
Is there IRS disaster relief in Texas right now?
As of the IRS’s Texas page, last updated July 9, 2026, the most recent Texas relief listed was TX-2025-04, which expired Feb. 2, 2026. The IRS posts new relief whenever a new disaster is declared, so the Tax relief in disaster situations page is the place to check for current listings.
Do I need to apply for IRS disaster tax relief?
Not usually. The IRS automatically identifies taxpayers with an address of record in the covered area and applies filing and penalty relief. Taxpayers who live outside the area but keep records inside it can call 866-562-5227 to request relief, and taxpayers who moved after filing can update their address with the IRS.
Can I deduct flood damage on my taxes?
Personal casualty losses are generally deductible only when they are attributable to a federally declared disaster and, beginning in 2026, certain state-declared disasters. The deduction is reduced by insurance reimbursements and is subject to other limits, so a tax professional can explain how the rules apply to a specific loss.
Does insurance affect a casualty loss deduction?
Yes. A casualty loss is generally reduced by insurance or other reimbursement, so the deductible amount reflects only the part insurance did not pay. If insurance covered the entire loss, there is generally no casualty loss to deduct. Keeping claim paperwork and settlement statements with your tax records can help.
What happened to the Nov. 3, 2025 IRS deadline for the South Texas floods?
News release TX-2025-03 postponed certain deadlines for taxpayers in Cameron, Hidalgo, Starr, and Willacy counties to Nov. 3, 2025, and that date has passed. The separate casualty loss election deadline for 2025 disasters was Oct. 15, 2026 for individuals.
Sources & Further Reading
Current rules
- IRS — Tax relief in disaster situations
- IRS — Disaster assistance and emergency relief for individuals and businesses
- IRS — FAQs for disaster victims
- IRS — Publication 547, Casualties, Disasters, and Thefts
- IRS — Casualty loss deduction expanded and made permanent
- IRS — Rev. Proc. 2018-58, Time-Sensitive Acts Postponed
2025 Texas relief (legacy)
- IRS — News Release TX-2025-03 (Texas storms and flooding, postponed to Nov. 3, 2025)
- IRS — News Release TX-2025-04 (Texas storms and flooding, postponed to Feb. 2, 2026)
- FEMA — DR-4871-TX, Texas Severe Storms and Flooding
Juan Cruz
