The IRS has announced tax relief for individuals and businesses in parts of Texas impacted by severe storms and flooding starting on 26 March 2025. Affected taxpayers have until 3 November 2025 to file tax returns and make payments.

The US Internal Revenue Service has issued TX-2025-03 on 10 June 2025, in which it announced tax relief for individuals and businesses in parts of Texas affected by severe storms and flooding that began on 26 March 2025. These taxpayers now have until 3 November 2025 to file various federal individual and business tax returns and make tax payments.

Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside in or have a business in Cameron, Hidalgo, Starr, and Willacy counties qualify for tax relief.

As a result, affected individuals and businesses will have until 3 November 2025 to file returns and pay any taxes originally due during this period.

The 3 November 2025 deadline applies to individual income tax returns and payments normally due on 15 April 2025. The 3 November deadline also applies to 2024 contributions to IRAs and health savings accounts for eligible taxpayers. This relief also applies to the estimated tax payments normally due on 15 April, 16 June, and 15 September 2025. Penalties on payroll and excise tax deposits due on or after 26 March 2025, and before 10 April 2025, will be abated as long as the tax deposits were made by 10 April 2025.

The 3 November 2025 deadline also applies to affected businesses:

  • Quarterly payroll and excise tax returns normally due on 30 April,  31 July and 31 October 2025.
  • Calendar-year corporation and fiduciary returns and payments normally due on 15 April 2025.
  • Calendar-year tax-exempt organisation returns normally due on 15 May 2025.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.