Understanding the IRS Filing Extension for Tennessee

Tax
Written By Kent Callison

Here at Callison CPA, our hearts go out to all our neighbors across Tennessee affected by the severe storms, tornadoes, straight-line winds, and flooding that swept through our state starting on April 2nd. We know that recovering from such events takes time, energy, and resources. The last thing anyone needs while dealing with the aftermath is the added stress of looming tax deadlines.

Fortunately, recognizing the significant impact these storms have had, the Internal Revenue Service (IRS) has announced important tax relief measures for affected individuals and businesses throughout the entire state of Tennessee.

Important Clarification: It's an Extension, Not an Exemption

While some initial news might have been confusing, it's vital to understand that this relief is a postponement of filing and payment deadlines, not an exemption from taxes owed. Think of it as much-needed breathing room provided by the IRS during this challenging recovery period.

Who Qualifies for Relief in Tennessee?

Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA) for the entire state (Designation EM-3625-TN), the IRS relief automatically applies to:

  • Individuals whose primary residence is located anywhere in Tennessee.

  • Businesses whose principal place of business is located anywhere in Tennessee.

This broad relief covers all 95 counties in the state. Additionally, relief may be available for:

  • Taxpayers whose necessary tax records are located within Tennessee, even if they live or operate elsewhere.

  • Relief workers affiliated with recognized government or philanthropic organizations assisting in the disaster areas.

  • Individuals injured because of the disaster while visiting Tennessee.

If you fall into these latter categories or moved into the disaster area after filing your last return, the relief may not be automatic, but you can likely still qualify by contacting the IRS directly (details below).

Which Federal Tax Deadlines Are Extended in Tennessee?

The IRS has extended various federal tax filing and payment deadlines that fall on or after April 2, 2025, and before November 3, 2025. The new deadline for these filings and payments is November 3, 2025.

This extension applies to several key deadlines, including:

  • 2024 Individual Income Tax Returns: Originally due April 15, 2025.

  • 2024 Individual Income Tax Payments: Originally due April 15, 2025.

  • 2024 Contributions to IRAs and Health Savings Accounts (HSAs): Originally due April 15, 2025.

  • 2025 Quarterly Estimated Income Tax Payments: Originally due April 15, June 16, and September 15, 2025.

  • Quarterly Payroll and Excise Tax Returns: Originally due April 30, July 31, and October 31, 2025.

  • Calendar-Year Corporate and Fiduciary Income Tax Returns and Payments: Originally due April 15, 2025.

  • Calendar-Year Tax-Exempt Organization Returns: Originally due May 15, 2025.

  • Form 5500 Series Returns: Due dates falling within the postponement period.

Note: While penalties on payroll and excise tax deposits due between April 2 and April 17, 2025, are abated if made by April 17, the extension generally does not apply to the deposit requirements themselves or certain information returns like W-2s or 1099s.

What About Tennessee State Taxes?

The Tennessee Department of Revenue has announced it will follow the federal government's lead and grant extensions for state tax filings and payments on a case-by-case basis for affected taxpayers. This extension would also push relevant state deadlines to November 3, 2025. Unlike the automatic federal relief, taxpayers (or their tax practitioners) must request this state extension by emailing Revenue.DisasterExtension@tn.gov with specific business details and a brief description of the storm's impact.

Do I Need to Take Action?

For most Tennessee residents and businesses with an IRS address of record within the state, this federal relief is automatic. You do not need to file special forms or call the IRS to receive the extension to November 3, 2025.

However, if you believe you qualify but live outside Tennessee (e.g., your necessary records are in the affected area), or if you receive a late filing or payment penalty notice from the IRS for a deadline within the postponement period, you should call the IRS disaster hotline at 866-562-5227 to request relief.

Claiming Casualty Losses

If you suffered uninsured or unreimbursed losses due to the storms, you might be able to claim these as casualty losses on your federal income tax return. You have the option to claim these losses on either:

  1. The return for the year the loss occurred (2025 return, filed in 2026), OR

  2. The return for the prior year (2024 return), which may require amending if already filed.

Claiming the loss on the prior year's return can sometimes result in a faster refund. There are specific rules and calculation methods for casualty losses, so professional guidance is highly recommended.

How Callison CPA Can Help

Navigating tax obligations after a natural disaster can be overwhelming. At Callison CPA, we are here to help Tennessee individuals and businesses understand and utilize this available relief. We can assist with:

  • Confirming eligibility for extensions

  • Evaluating the best strategy for claiming casualty losses

  • Assisting with state tax extension requests

  • Ensuring all filings are completed accurately and by the new deadlines

  • Providing ongoing tax planning and support during your recovery

Don't hesitate to reach out. We are committed to supporting our community through this difficult time.

Official Resources:

Kent Callison
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