The Internal Revenue Service (IRS) on Tuesday announced tax relief for individuals and businesses in the state of Washington affected by severe storms, straight-line winds, flooding, landslides and mudslides that began on Dec. 9.
These taxpayers now have until May 1, 2026, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency, individuals and households that reside or have a business in Lewis, Thurston, Grays Harbor and 14 other counties qualify for tax relief, according to a news release from the IRS.
The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Dec. 9 and before May 1, 2026, are granted additional time to file.
As a result, affected individuals and businesses will have until May 1, 2026, to file returns and pay any taxes that were originally due during this period.
The May 1, 2026, deadline applies to individual income tax returns and payments normally due on or after Dec. 9. This deadline also applies to 2025 contributions to individual retirement arrangements and health savings accounts for eligible taxpayers. This relief applies to the estimated tax payments normally due on Jan. 15, 2026, and April 15, 2026. Penalties on payroll and excise tax deposits due on or after Dec. 9 and before Dec. 29 will be abated as long as the tax deposits are made by Dec. 29.
The May 1, 2026, deadline also applies to affected quarterly payroll and certain excise tax returns normally due on Jan. 31, 2026, and April 30, 2026.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS Special Services toll-free number at 866-562-5227 to request this tax relief. Tax practitioners in the covered disaster area, who maintain records necessary to meet a filing or payment deadline for taxpayers located outside the disaster area, may contact the IRS Special Services.
Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts include individuals who live and businesses (including tax-exempt organizations) whose principal place of business is located in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area, and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.
Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year.
The IRS will waive the usual fees for requests for copies of previously filed tax returns for affected taxpayers
Qualified disaster relief payments are generally excluded from gross income. This means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents.
