IRS Announces Relief Notice for Washington State Flood Victims

The Internal Revenue Service has announced broad federal tax relief for individuals and businesses affected by the severe storms, flooding, landslides, and mudslides that began on December 9, 2025, in Washington State.

Following a federal disaster declaration, the Internal Revenue Service is postponing numerous federal tax filing and payment deadlines until May 1, 2026, for qualifying taxpayers.

Who Qualifies

You may qualify for this relief if you live in, or your business or tax records are located in, one of the following counties: Benton, Chelan, Clallam, Grays Harbor, Jefferson, King, Kittitas, Lewis, Mason, Pierce, Skagit, Snohomish, Thurston, Wahkiakum, Whatcom, and Yakima.

This relief follows a disaster declaration issued by Federal Emergency Management Agency.

At this time, it is unclear whether Washington State will grant comparable filing or payment relief for state tax purposes. We are monitoring guidance from the Washington Department of Revenue and will provide updates as they become available.

Key Federal Tax Deadlines Extended to May 1, 2026

For affected taxpayers, the May 1, 2026, deadline for filings and payments applies to:

• Individual income tax returns and payments originally due on or after December 9, 2025
• Business tax returns (including partnerships, S corporations, corporations, estates, and trusts)
• Estate, gift, and generation-skipping transfer (GST) tax returns
• Quarterly estimated income tax payments due January 15 and April 15, 2026
• Quarterly payroll and certain excise tax returns due January 31 and April 30, 2026
• 2025 contributions to IRAs and Health Savings Accounts (HSAs)

Estimated tax penalties will not apply so long as postponed payments are made by May 1, 2026.

Payroll and Excise Tax Deposits

Penalties for payroll and excise tax deposits due between December 9 and December 29, 2025, will be waived, provided the deposits were made by December 29, 2025.

Casualty Loss Deductions

Taxpayers in the disaster area may elect to claim uninsured disaster-related casualty losses on:

• Their 2025 return (normally filed in 2026), or
• Their 2024 return (filed in 2025)

For individuals, the deadline to make this election may extend as late as October 15, 2026, if filing on extension.

Retirement Plan Relief

Additional relief may be available for retirement plans and IRAs, including:

• Special disaster distributions not subject to the 10% early withdrawal penalty
• Income spread over three years in certain cases
• Potential hardship withdrawals

Each plan has specific rules, so coordination with plan administrators is important.

Automatic Relief and What to Do If You're Outside the Area

The IRS will automatically apply relief to taxpayers whose address of record is within the covered counties indicated above.

If you qualify for relief but live outside the disaster area (for example, because your tax records or tax advisor are located in the affected area), you may request relief by contacting the IRS Disaster Assistance line at 866-562-5227.

Our Guidance

This relief creates planning opportunities, and traps, particularly for:

• Estimated tax timing
• Trust, estate, and gift tax filings
• Business cash-flow management
• Retirement distributions
• Casualty loss elections

This alert is provided for general informational purposes only and does not constitute legal or tax advice. Application of IRS disaster relief rules depends on individual facts and circumstances. You should consult with your tax advisor regarding eligibility, elections, and the timing of filings and payments.