Potential IRS Tax Relief Update Following Hurricane Isaias

The Alabama Society of CPAs has been in frequent communication with the Alabama Department of Revenue and the Governor's Office since before Hurricane Isaias made landfall regarding potential tax relief for affected taxpayers. We have now been informed that Governor Kay Ivey has asked the Internal Revenue Service to grant up to 120 days of relief from all federal tax filing, payment, and other time-sensitive deadlines arising between October 7 and October 31, 2026, for Alabama individuals and businesses affected by Hurricane Isaias.

While this is an important step, members should understand that the Governor's request does not guarantee that relief will be granted. Any extension remains subject to approval by the U.S. Department of the Treasury and the Internal Revenue Service. Additionally, based on prior disaster events, even if relief is ultimately approved, an announcement may not occur for several weeks and could be applied retroactively to the affected period.

Our best advice remains to proceed with filing returns and making required tax payments as soon as possible. Unless and until the IRS announces otherwise, taxpayers and practitioners should continue to treat current filing and payment deadlines as in effect.

We appreciate the difficult position many of you are facing as a result of this weekend's storm. Many practitioners are balancing client responsibilities with disruptions affecting their own homes, families, offices, and communities. Please know that ASCPA is actively engaged with state and federal officials and is pulling every available lever on behalf of the profession as you continue this important work.

If hurricane-related circumstances prevent the timely filing of income, payroll, or other tax returns, taxpayers should maintain appropriate documentation, as both the IRS and the Alabama Department of Revenue may consider disaster-related facts and circumstances when evaluating requests for penalty relief on a case-by-case basis. (See ADOR Notice here: release)

ASCPA will continue to monitor the situation closely and will communicate any developments immediately as additional guidance becomes available.