IRS Extends Tax Deadlines for Kentucky Storm Victims

The Internal Revenue Service (IRS) has announced tax relief for individuals and businesses in the entire state of Kentucky following the severe storms and flooding that began on February 14, 2025. Notice KY-2025-02 postpones the 2024 tax filing and payment deadlines to November 3, 2025. The first three quarterly estimated tax payments (normally due April 15, June 15, and September 15) are also postponed to this date.

Following the disaster declaration EM-3624-KY issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Kentucky qualify for tax relief. The declaration permits the Internal Revenue Service (IRS) to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.

Important Considerations for Taxpayers

The Kentucky Department of Revenue has adopted the federal disaster tax relief. However, Kentucky state law currently does not allow for interest waivers on late payments, meaning taxpayers may still accrue interest on outstanding balances.

Additionally, other states and local jurisdictions have the discretion to adopt the federal disaster relief, meaning tax deadlines may still vary depending on the state or locality. Therefore, taxpayers with multi-state or Kentucky local obligations should verify deadlines with state and local tax agencies to avoid penalties or interest.

What This Means for You & Next Steps

For those affected by the recent storms in Kentucky, the relief provides additional time to file returns and make tax payments. However, reviewing your specific tax situation is crucial since not all deadlines are postponed, and some tax liabilities may still accrue interest.

If you have questions or need assistance, contact your CRI advisor to take full advantage of the available relief and avoid unexpected tax complications. Our team is available to help you determine how this relief applies to your circumstances.