Disaster procedures
Disaster relief
The IRS typically grants tax relief to taxpayers in presidentially declared disaster areas (for example, areas affected by hurricane, fire, flood, tornado, or other disasters natural or otherwise). Tax relief may include:
- Postponed filing deadlines
- Postponed deadlines for administrative requests
- Abatement of penalties and interest
- Carryback of casualty losses
- Waiver of certain administrative fees
The IRS issues a News Release for each presidentially declared disaster containing specific relief provisions. Go to Tax Relief in Disaster Situations for a full list of disaster area situations from the IRS. State agencies may or may not follow the IRS disaster relief provisions, so refer to the state agency for guidance.
Affected clients
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief based on their ZIP Code. Affected taxpayers who reside or have a business located outside the covered disaster area need to call the IRS disaster hotline at 866.562.5227 to request tax relief.
Due date
For 1040 and 1041 clients, go to the Payments folder, then the Pen screen. For states, go to the Pen2 screen for 1040, and the Rel screen for 1041. Enter the adjusted due date in the
Disaster relief date
field. The date entered in this field will be applied to the return due date, estimated tax payment due dates, penalty and interest calculations, and client documents. For all other entities, you'll need to adjust the due date in the client documents manually. You'll also need to suppress penalties if any are calculating.
important
If you need to extend a return beyond the disaster relief date, you'll still need to file an extension. If you want to e-file the extension, you'll need to do so by the original due date (without regard to disaster relief). Any extension filed after the original due date will need to be filed on paper.
E-filing
All returns (whether affected by disaster or not) need to be paper filed during the annual IRS MeF shut down period.
You may not need to make any special arrangements or requests with the taxing authority. The IRS allows any tax return (for clients affected by a disaster or not) from the current year and 2 prior years to be e-filed; therefore a
2025
return could be e-filed through the end of 2025. Contact the taxing authority that will be processing the return if you have questions about e-filing for clients who qualify for disaster relief.Electronic Funds Withdrawal (EFW)
Because returns affected by disasters are often filed after the original due date, there are some special considerations for EFW.
- If you file a return before the original due date and the disaster relief due date is after the original due date, the EFW requested payment date can't be later than the original due date.
- If you file a return after the original due date, the EFW requested payment date can't be later than the date you transmit the e-file to the IRS.
- Electronic funds withdrawal information for estimated payments can't be included in the e-file for any estimate due dates that have already passed.
Clients may be able to set up alternate payments by visiting the IRS Make a Payment page.
Updates to UltraTax CS
UltraTax CS isn't typically updated for disaster provisions because you can use data entry in the program to account for such provisions. Refer to the following examples of data entry.
Mark a return as affected
Making a note on a return doesn't designate the taxpayer as qualifying for disaster relief.
You may not need to mark a return as affected by a disaster at all. Refer to IRS Publication 547 to determine if you need to indicate that the return is for a client affected by a disaster. Here are a few options for marking a return.
- Go to the General input folder, then open theGeneral Footnotefield. You can type any relevant information about the disaster here. This will go with the e-file, but won't be included if you paper file.
- SelectHelp, thenTax Subject Index. SelectTax Subjects, then search forSpecial processing. Go to that field and enter the name of the disaster there.noteFor 1040 returns, you can only choose from the preloaded list of options. This will go with the e-file, but won't be included if you paper file.
- For paper filing, use the attached text to print a note on the front page of the return.
Penalties
For 1040 and 1041 clients, penalties are automatically adjusted based on the
Disaster relief date
you enter on the Pen or Pen2 screen in the Payments folder.For all other entities, you can stop the calculation of any penalties that the client is not required to pay. Generally, there is a checkbox to suppress penalties in the Payments folder on the Pen screen.
Filing instructions and client letters
If the IRS changed the due date of the return, you can update the filing instructions to reflect the extension of time to file. For 1040 clients, the date will automatically update in your client documents with the date entered in the
Disaster relief date
field on the Pen screen in the Payments folder.You can also set a global Disaster Relief date for all clients instead of on a by-client basis:
- Go toSetupand select an entity.
- SelectOther Return optionsin theFederaltab and open theReturn presentationtab.
- Enter a date inDisaster relief date (Screen Pen)(*Applies to all clients).
You can edit letters if you preview the return, then go to the document you want to edit. Select the
Edit
button, then make your edits.
