Residents in eight states in the Southeast have more time to prepare their taxes because of damage caused by severe weather that hit the region last year and this spring.
The Internal Revenue Service granted extensions for people filing their 2024 federal returns in Alabama, Florida, Georgia, North Carolina and South Carolina. The extension also applies to parts of Virginia.
On April 14, just before the traditional April 15 Tax Day deadline, the IRS announced an extension to Nov. 3 for all Arkansas and Tennessee taxpayers due to tornadoes and flooding that occurred earlier that month. The late notice was likely by design, according to Joseph Perry, national tax leader and managing director at CBIZ, a national financial and advisory firm.
"By the IRS waiting until the last minute, they will have those that may not be affected or as affected file because they can and are concerned about a late filing," he said in an email.
In addition, Georgia, North Carolina and South Carolina gave their residents until May 1 to file state returns. Virginia residents have until June 1. Alabama and Tennessee are offering state tax extensions on a case-by-case basis.
The Southeast faced a rash of storms in the past eight months including Hurricanes Debby, Helene and Milton, a storm that hit the west coast of Florida. All told, the storms caused widespread power outages, flooding and more than $100 billion in damage.
While the filing extensions may seem minor, they are anything but, especially in Arkansas and Tennessee, according to Craig Ballentine, a managing director at national accounting and advisory firm UHY.
"To be able to park that money in their accounts for an extra six months, that's pretty impactful," Ballentine said in an interview.