Tax Relief from Severe Storms and Flooding

MILWAUKEE, Wis. (CIVIC MEDIA) – Wisconsinites impacted by severe storms, damaging winds and flooding, help is available with deadlines pushed back.

The IRS announced that tax relief for people and businesses in areas of the state hit by flooding in August, now have until Feb. 2, 2026, to file federal individual and business tax returns and make tax payments.

“The benefit for taxpayers is it lets them focus on recovering from the emergency and not worrying about filing their taxes by the deadline of October 15th or making their payroll tax deposit.” said Stacy Engle from the Internal Revenue Service.

Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), homes or business in Milwaukee, Washington, and Waukesha counties qualify.  

“Those that work or live in the affected counties don’t need to do anything. Unless they just recently moved there and their address isn’t correct.” says Engle.

The IRS states that they automatically identify taxpayers located in the covered area and apply filing and payment relief. But those who live or have a business outside of the disaster area, should call IRS Special Services at 866-562-5227 to request it.

All relief workers affiliated with a recognized government or philanthropic organization assisting in the relief efforts in the covered disaster area qualify. Also, anyone that visited the disaster area and was injured as a result can also get relief. Those who do not qualify, may apply for reasonable cause.

If you were affected and still get a late filing or late payment penalty notice from the IRS, call the telephone number on the notice immediately.

“An extension of time to file is not an extension of time to pay. Even though they are extending this, if they have a balance due in April penalties and interest still may accrue, however they do have the right to request those be removed.” says Engle.

The Feb. 2, 2026, filing deadline applies to:

• Any individual, business or tax-exempt organization that has a valid extension to file their 2024 return due to run out on Oct. 15, 2025.
• Quarterly estimated income tax payments normally due on Sept. 15, 2025, and Jan. 15, 2026.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2025, and Jan. 31, 2026.
• Calendar-year partnerships and S corporations whose 2024 extensions run out on Sept. 15, 2025.
• Calendar-year corporations whose 2024 extensions run out on Oct. 15, 2025.
• Calendar-year tax exempt organizations whose extensions run out on Nov. 17, 2025.

Additional information.

The IRS says you can deduct personal property losses that are not covered by insurance or other reimbursements. When claiming disaster loss, add FEMA disaster declaration number, 4892-DR on any return.

“If they receive money from a government agency, for replacement of personal, family, living, funeral, repair or rehab of their home and replacement of its contents all of that stuff is excludable from income.” explains Engle.