Tax Services • Published 8/31/2021 Major Disaster Declaration & Tax Relief Related to Hurricane Ida

On August 30, 2021, FEMA announced that federal disaster assistance has been made available for recovery efforts in the areas affected by Hurricane Ida. This assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster. In addition, this designation also triggers the availability of certain tax relief measures as described below.

Read the full announcement from FEMA

Who is eligible for disaster assistance?

Federal funding is available to affected individuals in Ascension, Assumption, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Washington, West Baton Rouge, and West Feliciana parishes.

Federal funding is also available to state, tribal and eligible local governments, and to certain private nonprofit organizations, for hurricane debris removal in the same parishes. Federal funding is also available on a cost-sharing basis for hazard mitigation measures throughout the entire state of Louisiana.

Residents and business owners who sustained losses in the designated areas can apply for assistance by registering online at www.DisasterAssistance.gov or by calling 1-800-621-3362 or 1-800-462-7585 TTY.

Tax relief measures

On August 31, 2021, the IRS announced that victims of Hurricane Ida now have until January 3, 2022 to file various individual and business tax returns and make tax payments. The tax relief postpones tax filing and payment deadlines that occurred starting on August 26, 2021. The IRS is offering this relief to any area designated by FEMA as qualifying for individual or public assistance.

Individuals who had a valid extension to file their 2020 tax return due to run out on October 15, 2021 will now have until January 3, 2022 to file. Keep in mind that because tax payments related to these 2020 returns were due prior to August 26, 2021, those payments are not eligible for this relief. If you have questions about your tax obligation or the updated deadlines, please contact your P&N tax advisor.

Read the full announcement from the IRS

Other resources

FEMA: Hurricane Ida Resource Page

IRS: Help for Victims of Hurricane Ida

P&N professionals are closely monitoring Hurricane Ida relief developments at the federal, state, and local levels as recovery efforts get underway. We are committed to helping our clients understand and leverage the disaster relief options available. Please contact us or connect with your P&N advisor to discuss your organization’s questions, concerns, and unique situation.