Indiana Storm Victims Receive Federal and State Tax Relief
The IRS has announced tax relief for Indiana individuals and businesses affected by the severe storms, straight-line winds, tornadoes, and flooding that began on August 11, 2026. Eligible taxpayers now have additional time to file certain tax returns, make tax payments, and complete other tax-related actions.
Who Qualifies?
The relief applies to taxpayers who live or have a business in the following Indiana counties: Carroll, Dearborn, Decatur, Delaware, Fayette, Franklin, Hamilton, Hancock, Henry, Lake, LaPorte, Madison, Marion, Morgan, Porter, Pulaski, Randolph, Rush, Tipton, Union, and Wayne. The IRS may also grant relief to taxpayers outside the affected counties whose tax records are located within the disaster area.
New Federal Tax Deadline: February 1, 2027
The IRS has postponed many federal filing and payment deadlines that would otherwise fall between August 11, 2026, and February 1, 2027. Affected taxpayers generally have until February 1, 2027 to complete these obligations.
This extension includes:
Individual income tax returns on extension
S corporation returns
Partnership returns
Corporate income tax returns
Fiduciary and trust returns
Certain quarterly payroll and excise tax returns
Estimated tax payments otherwise due during the relief period
One important exception: tax payments that were due with 2025 individual income tax returns on April 15, 2026, are not eligible for postponement because those payments were due before the disaster occurred.
Payroll Tax Deposit Relief
The IRS will abate penalties on certain payroll and excise tax deposits due on or after August 11, 2026, and before August 26, 2026, provided the deposits are made by August 26, 2026.
Potential Casualty Loss Deductions
Taxpayers who suffered uninsured or unreimbursed losses from the storms may have the option to claim a disaster-related casualty loss on either:
Their 2026 federal income tax return, or
Their 2025 federal income tax return
For many taxpayers, claiming the deduction on the prior-year return can accelerate tax benefits and potentially generate a refund sooner.
Indiana Department of Revenue Relief
The Indiana Department of Revenue (DOR) generally follows federal disaster declarations and provides corresponding filing extensions for qualifying taxpayers. According to DOR guidance, many disaster-related filing extensions are applied automatically when taxpayers are located in a FEMA-designated disaster area.
Taxpayers who believe they qualify for disaster relief but do not see the extension applied should contact the Indiana Department of Revenue for assistance.
Helpful Resources
IRS Announcement
Indiana Department of Revenue
How We Can Help
If you live or operate a business in one of the affected counties, we can help determine:
Which filing deadlines apply to you
Whether estimated tax payments qualify for relief
Whether a casualty loss deduction is available
How the federal and Indiana extensions affect your specific situation
If you have questions about how the disaster relief provisions apply to your tax return, please contact us.
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