IRS Extends Tax Deadlines for Indiana Storm and Flood Victims to February 2027

IRS Grants Tax Relief to Indiana Storm and Flood Victims

Severe weather events, including storms, straight-line winds, and flooding, that struck Indiana on August 11, 2026, have prompted the Internal Revenue Service (IRS) to offer significant tax relief to affected individuals and businesses. This relief allows taxpayers in 21 designated counties to postpone most federal tax filings and payments until February 1, 2027. The IRS announced this measure on September 2, 2026, with an update on September 4, 2026, to provide much-needed breathing room for those recovering from the disaster.

Extended Deadlines for Most Tax Obligations

The IRS disaster relief provides a new federal deadline for a wide range of tax obligations. This postponement applies to original or extended due dates that fall between August 11, 2026, and February 1, 2027. This broad relief covers individual income tax returns, corporate filings, partnership returns, S corporation and trust returns, estate and gift tax returns, and generation-skipping transfer tax returns. Additionally, tax-exempt organization information returns and certain employment and excise tax returns are included in this extension. This means that taxpayers in the affected areas have until February 1, 2027, to file and pay these covered federal taxes without penalty.

Designated Counties Eligible for Automatic Relief

The tax relief is automatically applied to individuals and businesses located in 21 specific Indiana counties that were directly impacted by the severe weather. These counties are:

• Carroll
• Dearborn
• Decatur
• Delaware
• Fayette
• Franklin
• Hamilton
• Hancock
• Henry
• Lake
• LaPorte
• Madison
• Marion
• Morgan
• Porter
• Pulaski
• Randolph
• Rush
• Tipton
• Union
• Wayne

Taxpayers within these jurisdictions do not need to take any special action to receive this relief, as it is automatically applied to their tax obligations. The extension does not create separate filing schedules for each county; a uniform deadline of February 1, 2027, applies to all covered filings and payments within these designated areas.

Special Deadline for Payroll and Excise Tax Deposits

While most tax filings and payments have been extended to February 1, 2027, a separate, earlier deadline applies to certain payroll and excise tax deposits. Specifically, deposits that were due on or after August 11, 2026, and before August 26, 2026, can avoid penalties if they are made by August 26, 2026. This provides a narrow window for businesses to ensure these critical deposits are made promptly to qualify for penalty abatement. Deposits due after August 26, 2026, and before February 1, 2027, fall under the general postponement to the later date.

Important Distinctions: Filing vs. Payment Relief

It is important for affected taxpayers to understand that the extension of filing deadlines does not necessarily extend the payment deadline for all tax liabilities. For tax year 2025, which would typically be filed in 2026, the postponed date applies to individuals who had a valid extension to file their federal income tax return. However, this does not postpone taxes that were originally due on April 15, 2026. This distinction means that while taxpayers may have more time to submit their extended return, the tax liability itself may still be tied to the earlier payment date.

Relief for Taxpayers Outside Designated Areas

Taxpayers who have been affected by the disaster but do not reside in the 21 automatically covered counties can still request similar relief. These individuals and businesses should contact the IRS Special Services toll-free number at 866-562-5227. By reaching out directly, affected taxpayers outside the designated disaster area can apply for the same postponement of deadlines under section 7508A of the tax code, which allows the IRS to adjust deadlines following a federal disaster declaration. This provision ensures that those impacted by the storms and flooding, regardless of their specific location within the affected region, can receive necessary tax assistance.

Frequently Asked Questions