Tax Filing and Payment Extensions Due to Recent Disasters

If an area receives a disaster declaration either from the federal or state government, there is usually an accompanying deadline extension for tax filing and payments. So far in 2025, disaster victims in 12 states have automatic extensions to file and pay their 2024 federal taxes, and many state jurisdictions have followed suit.

You can find a list of federal tax disaster relief issued so far in 2025 on the IRS website by clicking here. In addition, these states have recently announced disaster tax relief programs:

Arkansas

Counties impacted by the March 14, 2025 severe thunderstorms and tornadoes have until July 31, 2025 to file income tax and certain related information returns originally due April 15, 2025. Filing and payment deadlines are also extended until July 31, 2025 for income tax returns and extension payments due between March 14, 2025 and July 31, 2025 as well as for quarterly estimated income taxes due between March 14, 2025 and June 30, 2025. In addition, the requirement for a written request for an extension is waived through July 31, 2025.

Counties affected by this relief include Baxter, Chicot, Clark, Fulton, Greene, Hempstead, Hot Spring, Independence, Izard, Jackson, Lawrence, Nevada, Phillips, Randolph, Sharp, Stone, White, and Woodruff.

To see a copy of Governor Huckabee’s executive order, click here.

Texas

Taxpayers in counties for which Governor Greg Abbott has declared a disaster for either severe weather or the Welder Fire may be eligible for an extension of time to file and pay taxes due. Such extensions are available only upon request and do not apply to property taxes. 

A current list of counties with filing and payment disaster relief can be found on the Texas Comptroller’s website by clicking here.

State by State News

Updated State Conformity with the Internal Revenue Code (IRC)

Arizona has updated its conformity with the IRC as of January 1, 2025. This includes any provisions that became effective during 2024 with specific adoption of their retroactive effective dates, but excluding all changes to the Code enacted after January 1, 2025.

Ohio has updated its conformity with the IRC from March 15, 2023 through March 7, 2025, including changes made by the Federal Disaster Tax Relief Act of 2023. Among other things, the Federal Disaster Tax Relief Act excludes qualified disaster relief payments for losses resulting from the East Palestine train derailment on February 3, 2023.

Idaho Refundable Food Tax Credit Increase

Beginning January 1, 2025, the Idaho refundable food tax credit increases from $120 to $155 for the taxpayer, the taxpayer’s spouse, and each dependent on the personal income taxpayer’s return. An additional credit of $20 for residents aged 65 and older has been repealed.

An increased credit of up to $250 per person is also available provided that copies of sales tax receipts of qualifying food purchases are included with the return. The types and kinds of food products on which sales tax qualifies for the credit are the same types and kinds of food products that are eligible for purchase with benefits provided under the federal supplemental nutrition assistance program (SNAP); certain types of food are ineligible.

More information can be found by clicking here.

Mississippi Governor Signs Bill to Phase Out Individual Income Tax

Governor Tate Reeves signed a bill on March 27, 2025 to gradually reduce the state’s individual income tax rate to 3% by calendar year 2030, with future annual decreases down to 0%. In addition, the sales tax on groceries will move from 7% to 5%.

To read the governor’s news release, click here.

Nebraska Pass-Through Entity Tax FAQs Updated

The Nebraska Department of Revenue has updated its guidance on the pass-through entity tax (PTET). Elections for any one of the tax years 2018 through 2022 must be filed on or before December 30, 2025. For tax years after 2022, the election on Form PTET-E may be made on the applicable Nebraska income tax return or submitted via the department's secure file sharing system. When a taxpayer makes the PTET election, Box 5 must be checked on the applicable PTE Nebraska income tax return, even if the PTET-E was previously submitted. The PTET election for tax years after 2022 must be received by the department on or before the due date of the return, including any granted extension.

North Carolina Updates Personal Taxes Bulletin

The North Carolina Personal Taxes Bulletin has been updated to incorporate all legislative changes made in 2024. The publication includes information on personal income tax, passthrough entities (PTEs), and withholding tax laws pertaining to individuals, partnerships, S corporations, estates, trusts, and income tax withholding. A copy of the updated Bulletin can be found here.

Ohio Sales Tax Increase for Certain Counties

The Ohio Department of Taxation has announced that effective April 1, 2025, the Central Ohio Transit Authority (COTA) passed a permanent 0.5% sales tax rate increase for all of Franklin County and portions of Fairfield, Union, Licking, and Delaware Counties within the COTA district.

For the COTA district in Delaware County, the rate will increase from 7.5% to 8.0%; for the COTA district in Fairfield County, the rate will increase from 7.25% to 7.75%; for Franklin County, the rate will increase from 7.5% to 8.0%; for the COTA district of Licking County, the rate will increase from 7.75% to 8.25%; and for the COTA district of Union County, the rate will increase from 7.5% to 8.0%.

Virginia Introduces New Sales Tax Form

The Virginia Department of Taxation has introduced a new sales tax form, Form ST-1, which will replace multiple sales tax forms and schedules beginning in April 2025. Form ST-1 will replace Forms ST-9, ST-8, ST-7, and ST-6, combining the elements into one single form.

Businesses with an electronic filing waiver no longer need to complete multiple schedules, as the new Form ST-1 consolidates those schedules into one table.

These changes will take effect in May for monthly filers and in July for quarterly filers.

More information from the Virginia Department of Taxation website can be found here.

For more about State and Local Tax visit MizeCPAs.com