The IRS has postponed federal tax filing and payment deadlines to 1 February 2027 for taxpayers and businesses in 21 Indiana counties affected by severe storms, tornadoes, straight-line winds, and flooding, with certain payroll and excise tax penalties also eligible for relief.
The US Internal Revenue Service (IRS) announced tax relief on 2 September 2026 following FEMA’s disaster declaration for Indiana counties affected by severe storms, straight-line winds, tornadoes, and flooding that struck on 11 August 2026.
Affected taxpayers and businesses now have until 1 February 2027 to file federal returns and settle tax obligations that were originally due between 11 August 2026 and 1 February 2027.
Geographic scope of relief
The relief covers 21 Indiana counties: Carroll, Dearborn, Decatur, Delaware, Fayette, Franklin, Hamilton, Hancock, Henry, Lake, LaPorte, Madison, Marion, Morgan, Porter, Pulaski, Randolph, Rush, Tipton, Union, and Wayne. Individuals and businesses domiciled or operating in these counties qualify for the postponement automatically.
Deadline modifications and limitations
Taxpayers holding a valid extension for their 2025 individual income tax return gain additional time under the 1 February 2027 extension. Payments originally due on 15 April 2026 for 2025 returns, however, remain outside the relief period and are not subject to postponement.
Quarterly payroll and certain excise tax returns normally due on 2 November 2026 now fall under the extended deadline of 1 February 2027.
Penalty abatement provisions
The IRS will abate penalties on payroll and excise tax deposits due between 11 August 2026 and 26 August 2026, provided those deposits are made by 26 August 2026.
Taxpayers who receive late-filing or late-payment notices with original due dates falling within the postponement window should contact the IRS using the telephone number on the notice to request penalty abatement.
Under the extension act framework, the federal tax return deadline postponement triggered by the disaster declaration counts as an extension for refund-claim purposes, allowing affected taxpayers an expanded window to claim refunds or credits.
