The state of Arkansas in the United States has been declared a disaster area in response to tornadoes, severe storms, and flooding that began on April 2, 2025. In response, the Internal Revenue Service (IRS) has proposed tax relief measures for affected individuals and businesses, including extended federal tax filing and payment deadlines.

This legislation affects all taxpayers in Arkansas’s 75 counties that have been officially recognised by the Federal Emergency Management Agency. This applies to both persons and businesses, and no formal application is required to obtain relief if the address on file with the IRS is in the impacted area.

The new dates are meant to provide a temporary financial relief as the recovery process proceeds. The overall deadline for meeting tax obligations has been extended to November 3, 2025, giving many citizens time to reorganise their finances following the emergency.

What does IRS tax relief for Arkansas include?

The IRS announced tax savings for all federal returns and payments due between April 2 and November 3, 2025. During the deferral period, taxpayers will have more time to make up on their commitments without incurring further penalties or interest.

The measure covers the following dates and payments:

• Form 1040 forms and payments were originally due on April 15.
• Contributions to IRAs and health savings accounts (HSAs) through 2024.

• Quarterly anticipated payments are payable on April 15, June 16, and September 15.
• Payroll and special tax returns are due on April 30, July 31, and October 31.
• Annual returns for firms and trusts are due on April 15.
• Nonprofit organisation returns were initially due on May 15.

Furthermore, fines for payroll and other special taxes payable between April 2 and April 17 will be avoided if paid by April 17.

Additional assistance and discounts for disaster losses

Taxpayers can also claim uninsured or unreimbursed losses from the natural disaster. These can be used to either the 2025 (due next year) or 2024 returns, whichever is chosen. In either scenario, they must include the FEMA 3627-EM return number on their tax returns.

Another type of assistance is the ability to deduct disaster relief payments received from government entities from gross income. These monies can be utilised for personal, family, funeral, or home repair and rehabilitation costs.

Taxpayers with retirement funds or IRAs may also be eligible for exceptional disaster distributions without incurring the additional 10% early withdrawal penalty. In some situations, the income can be spread out over three years, or a hardship withdrawal may be taken if the plan allows it.

For those who do not immediately qualify for this assistance, the IRS reminds them that they can still request a penalty waiver for fair cause. Additional information about this and other types of relief is available at IRS.gov.