IRS Extends Washington State Disaster Tax Deadline to August 15, 2026

WASHINGTON — The Internal Revenue Service has once again extended tax relief for individuals and businesses in parts of Washington state affected by severe weather, pushing various filing and payment deadlines to August 15, 2026. The announcement provides further breathing room for taxpayers recovering from a series of severe storms, straight-line winds, flooding, landslides, and mudslides that began in December 2025. The relief stems from a disaster declaration issued by the Federal Emergency Management Agency (FEMA). This latest extension moves the deadline from a previously announced date of May 1, 2026, giving affected parties an additional three and a half months to manage their tax obligations. The automatic relief applies to any individual or business located in the FEMA-designated disaster areas. According to the IRS, this currently includes 17 counties: Benton, Chelan, Clallam, Grays Harbor, Jefferson, King, Kittitas, Lewis, Mason, Pierce, Samish, Skagit, Snohomish, Thurston, Wahkiakum, Whatcom, and Yakima. Taxpayers in newly added localities will automatically receive the same filing and payment relief. This postponement covers a wide range of tax deadlines that occurred on or after December 9, 2025. For small and mid-sized businesses, the new August 15, 2026, deadline applies to several key filings. This includes 2025 calendar-year returns for partnerships and S corporations, which were originally due on March 15, 2026, as well as returns for corporations and trusts originally due on April 15, 2026. Individual income tax returns and payments, normally due on April 15, also fall under the extension. Furthermore, the relief encompasses the quarterly estimated income tax payments that were due on January 15, 2026, and April 15, 2026. Quarterly payroll and certain excise tax returns normally due on January 31, 2026, and April 30, 2026, are also now due on August 15. In addition to filing extensions, the relief provides more time for certain other actions. Eligible taxpayers now have until August 15, 2026, to make 2025 contributions to their IRAs and health savings accounts (HSAs). The IRS also noted that penalties on payroll and excise tax deposits due between December 9, 2025, and December 29, 2025, would be abated as long as the deposits were made by December 29, 2025. The relief is applied automatically to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get the extension. However, if an affected taxpayer resides or has a business outside the covered area, they should call the IRS disaster hotline to request the relief. This includes workers assisting with relief activities who are affiliated with a recognized government or philanthropic organization. Beyond filing postponements, the disaster declaration provides taxpayers with a specific option for claiming casualty losses. According to the IRS, affected taxpayers can choose to claim disaster-related casualty losses on their federal income tax return for either the year the disaster occurred (the 2025 return filed in 2026) or the prior year (the 2024 return). Claiming the loss on a 2024 return, which may require filing an amended return, could result in a faster refund. Taxpayers have up to six months after the due date of their federal income tax return for the disaster year, without extensions, to make this election. For individuals, this means the election must be made by October 15, 2026. While this extended deadline provides critical breathing room, it can also create a false sense of security for business owners. In our experience, disaster-related extensions often lead to procrastination, which can cause significant problems down the road. Businesses should use this extra time not to delay, but to meticulously document damages, assess financial impacts, and organize records for casualty loss claims. Waiting until late July or early August to begin this process can result in rushed, inaccurate filings and missed opportunities for deductions that are vital for recovery. Cash flow management remains paramount, and a delayed tax payment does not erase the liability. We advise clients to continue their financial planning and bookkeeping with discipline. For businesses needing guidance on their specific obligations and strategies during this period, C&S Finance Group LLC offers expert tax preparation and compliance services at csfinancegroup.com. Moving forward, business owners in Washington should continue to monitor announcements from both FEMA and the IRS, as additional counties could be added to the disaster declaration. The full economic impact of the storms on the region's small and mid-sized companies will become clearer as they navigate the complex process of recovery, insurance claims, and their postponed tax obligations over the coming months.