Flood Recovery Series: IRS to Offer Tax Relief for Businesses in Lewis County
IRS Tax Relief for Lewis County Businesses
As Lewis County continues the long process of recovering from the recent flooding, it is important for individuals and businesses to know that federal tax relief may be available to those affected by the disaster.
Under Internal Revenue Code Section 7508A, the IRS can postpone certain tax-filing and tax-payment deadlines for taxpayers affected by a federally declared disaster. West Virginia is included in FEMA Major Disaster Declaration DR-4932.
Extended Tax Deadlines
For taxpayers who live or operate a business in the designated disaster area, certain tax deadlines that fall on or after July 21, 2026, and before February 1, 2027, have been postponed until February 1, 2027.
This may provide additional time for affected businesses and individuals to:
File certain federal tax returns
Make certain tax payments
Complete other qualifying tax-related obligations
Estimated Tax Payments
Estimated income tax payments originally due on or after July 21, 2026, are also postponed until February 1, 2027.
Affected taxpayers will not be subject to penalties for failing to make these estimated tax installments on time, provided the payments are made by February 1, 2027.
Need Copies of Past Tax Returns?
Flooding can destroy or damage important business and personal records. The IRS is providing additional assistance to affected taxpayers who need copies of previously filed tax returns.
The IRS will waive the usual fees for requests for copies of previously filed tax returns for eligible disaster victims.
When requesting a copy of a tax return, taxpayers should write “4932-DR” in bold letters at the top of the appropriate form:
Form 4506 – Request for Copy of Tax Return
Form 4506-T – Request for Transcript of Tax Return
This may be particularly helpful for businesses that lost financial records, tax documents, or other important paperwork in the flooding.
Disaster Assistance Payments May Not Be Taxable
Another important point for flood victims is that qualified disaster relief payments are generally excluded from gross income.
This can include certain payments received from government agencies for reasonable and necessary expenses related to:
Personal, family or living expenses
Funeral expenses
Repair or rehabilitation of a home
Repair or replacement of household contents
There are specific rules regarding which payments qualify. Taxpayers should consult IRS Publication 525 or their tax professional for additional information.
Retirement Accounts and Disaster Recovery
Additional tax relief may be available to individuals who participate in a retirement plan or have an IRA.
Depending on their circumstances, an eligible taxpayer may be able to take a special disaster distribution that is not subject to the usual additional 10% early-distribution tax. In some cases, the distribution may be included in income over a three-year period.
Other options, including certain hardship withdrawals, may also be available.
Because retirement plans and IRAs have specific rules, anyone considering a withdrawal should talk with their financial advisor or tax professional before taking action.
Keep Your Records
Even if you are not ready to address your taxes yet, now is a good time to begin documenting your flood-related losses and expenses.
Keep copies of:
Photos and videos of damage
Insurance claims and correspondence
Receipts for cleanup, repairs and replacement items
Contractor estimates and invoices
Government assistance documentation
Payroll and business interruption records
Bank and financial records
Tax documents and prior tax returns
Good documentation can be critical when applying for assistance, filing insurance claims and determining potential tax benefits.
Where to Learn More
The IRS provides complete information about disaster-related tax relief, including eligibility requirements and specific filing provisions.
Visit the IRS Disaster Situations resource at IRS.gov – Tax Relief in Disaster Situations.
Information about West Virginia's federal disaster declaration is available through FEMA – Disaster 4932.
A reminder for businesses and individuals: This information is intended as a general resource and is not tax or financial advice. Because every taxpayer's situation is different, consider consulting your accountant, tax preparer or financial advisor about how these provisions apply to you.
Lewis County Flood Recovery Series
The Lewis County Chamber of Commerce is sharing information and resources to help businesses, nonprofits, farmers and families navigate the recovery process. We will continue to provide information about financial assistance, cleanup, rebuilding, records recovery and other resources as they become available.
