Did South Carolina extend tax filing and payment deadlines because of Hurricane Idalia, and which taxes qualified?

Plain-English summary

In response to Hurricane Idalia, South Carolina matched the IRS's federal relief and postponed a set of tax deadlines to February 15, 2024 — but only for the income and payroll returns that follow the federal income tax deadline, not for sales tax or most other state taxes.

On September 6, 2023, the IRS announced special filing and payment relief for taxpayers affected by Idalia (IR-2023-163). Because FEMA designated all 46 South Carolina counties as a federal disaster area, the relief reached individuals residing in South Carolina and businesses located there, based on the IRS address of record. The South Carolina Department of Revenue then provided the same relief for the state taxes that conform to the federal income tax deadline.

What was postponed to February 15, 2024

The Department postponed until February 15, 2024 certain filing and payment deadlines originally falling on or after August 29, 2023 and through February 15, 2024, including:

• 2022 South Carolina income tax returns — individual, C corporation, and trust returns not yet filed, including those on a valid extension expiring October 16, 2023, and tax-exempt organizations on an extension expiring November 15, 2023.
• Quarterly estimated income tax payments originally due September 15, 2023 (corporations) and January 16, 2024 (non-corporate taxpayers).
• Quarterly payroll returns due October 31, 2023 and January 31, 2024.

Interest and penalties related to this relief were waived, and the Department applied the relief automatically — affected taxpayers did not need to take any action.

Important limits

• 2022 individual income tax payments were due April 18, 2023, so they did not qualify for this relief.
• The relief did not apply to current collection matters, including payments under an existing payment plan.
• Payroll tax deposits due on or after September 25, 2023 were not extended. However, penalties on payroll deposits due on or after August 29, 2023 and before September 13, 2023 were abated if the deposits were made by September 13, 2023.
• The February 15, 2024 relief did not cover other state taxes: state sales and use tax, local sales and use tax collected by the Department, property tax returns filed with the Department, motor fuel user fees, state accommodations tax, and beer, wine, and liquor taxes.

What this means for you

If you were an affected South Carolina taxpayer

You automatically received the extended February 15, 2024 deadline for the covered income and payroll returns and estimated payments — no application was required. If you received a penalty notice anyway, the Department directed you to call the number on the notice to discuss the relief.

Don't over-read a disaster extension

A federal/state income tax deadline extension does not move your sales tax, accommodations tax, or other state tax deadlines, and it generally does not erase payments that were already due before the disaster window (like the April 2023 individual income tax payment). Read the letter's list of what is and isn't covered.

This particular relief has expired

The Idalia relief ran to specific 2023-2024 dates. It is described here for reference; for any current disaster, check the Department's latest information letter and the IRS disaster relief page.

Common questions

Q: Did I have to apply for the Idalia relief?
A: No. The Department applied it automatically to affected taxpayers based on the IRS address of record. If you still received a penalty notice, you were told to call the number on the notice.

Q: Did the extension cover my South Carolina sales tax?
A: No. It covered income and payroll returns tied to the federal income tax deadline. State and local sales and use tax, property tax returns, motor fuel user fees, accommodations tax, and alcohol taxes were not included.

Q: My 2022 individual income tax payment was due in April 2023 — was that extended?
A: No. Those payments were due April 18, 2023, before the disaster window, so they were not eligible. The relief also did not apply to existing collection matters or payment plans.

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL23-12.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #23-12
SUBJECT:

Hurricane Idalia Tax Relief for Persons and Businesses in South Carolina

DATE:

September 7, 2023

AUTHORITY:

S.C. Code § 12-4-320(6)
S.C. Code § 1-23-10(4)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public to announce
general information useful in complying with the laws administered by the
Department. An Information Letter has no precedential value.

I.

Internal Revenue Service Tax Relief.

On September 6, 2023, the Internal Revenue Service (IRS) announced special filing and payment
relief for taxpayers in areas affected by Idalia (see IR-2023-163). The Federal Emergency
Management Agency (FEMA) has designated all of South Carolina as an affected federal disaster
area. Thus, the special relief applies to individuals residing in South Carolina and to businesses
located in South Carolina, as determined by the IRS address of record.
II.

South Carolina Department of Revenue Income Tax Relief.

In conjunction with the IRS tax relief, the South Carolina Department of Revenue (Department) is
also providing affected taxpayers the same relief provided by the IRS. If the IRS grants an
additional relief period, then the Department will consider granting the same relief. In addition,
the Department may grant additional tax relief on a case-by-case basis, depending on the
taxpayer’s particular circumstances.
Accordingly, the Department is postponing until February 15, 2024, certain filing and payment
deadlines originally falling on or after August 29, 2023 and through February 15, 2024.
Taxpayers that have not yet filed will have until February 15, 2024 to file 2022 South Carolina
income tax returns (e.g., individual, C corporation, trust returns). Included in this extension are
filing deadlines for those who received an extension to file their 2022 return expiring on October

16, 2023 (e.g., individuals and corporations) and tax-exempt organizations with an extension
expiring on November 15, 2023. Likewise, taxpayers will have until February 15, 2024 to make
quarterly estimated payments that were originally due on September 15, 2023 for corporations and
January 16, 2024 for non-corporate taxpayers. Interest or penalties related to this tax relief will be
waived.
Note: Because the tax payments related to the 2022 individual income tax returns were due April
18, 2023, these payments are not eligible for this relief. Moreover, this relief does not apply to
current collection matters, including payments due under any payment plan previously entered into
with the Department.
This relief also applies to the filing of quarterly payroll returns due on October 31, 2023, and
January 31, 2024. South Carolina payroll tax deposits due on or after September 25, 2023 are not
extended. However, penalties on payroll tax deposits due on or after August 29, 2023, and before
September 13, 2023, will be abated provided the tax deposits are made by September 13, 2023.
Note: Even with the filing deadline extended to February 15, 2024, the Department is encouraging
taxpayers who are due an income tax refund to file as soon as possible and file electronically. The
Department is continuing to process tax returns and issue income tax refunds.
Other Taxes Not Eligible for South Carolina Tax Relief. The February 15, 2024 relief does not
apply to payments of other state taxes administered by the Department or the filing of any other
tax returns with the Department (i.e., those taxes other than the taxes conforming to the new federal
income tax deadline). This includes state sales and use taxes; local sales and use taxes collected
by the Department; property tax returns filed with the Department; motor fuel user fees; state
accommodations taxes; and beer, wine, and liquor taxes.
Returns Filed by Affected Taxpayers. The Department will automatically provide relief to
returns filed by affected taxpayers. No action is required of these taxpayers to qualify for or receive
this relief.
Notices Received by Affected Taxpayers. Individuals or businesses affected by Hurricane Idalia
who receive a penalty notice from the Department should call the Department at the number listed
on the notice to discuss the application of any tax relief provided by the Department.
Tax Relief Questions. Taxpayers with general South Carolina tax relief questions should contact
the Department toll free at 1-844-898-8542. Affected taxpayers and businesses outside of
designated disaster areas but whose necessary tax records are located within disaster areas, as well
as relief workers assisting in relief activities, should contact the IRS at 866-562-5227 to determine
relief eligibility.

IR-2023-163, Sept. 6, 2023

WASHINGTON — The Internal Revenue Service today announced tax relief for individuals
and businesses affected by Idalia, anywhere in South Carolina. These taxpayers now have
until Feb. 15, 2024, to file various federal individual and business tax returns and make tax
payments. This is similar to relief already being provided in most of Florida.
The IRS is offering relief to any area designated by the Federal Emergency Management
Agency (FEMA). All 46 counties in South Carolina qualify. Individuals and households that
reside or have a business in these counties qualify for tax relief. The current list of eligible
localities is always available on the disaster relief page on IRS.gov.

Filing and payment relief

The tax relief postpones various tax filing and payment deadlines that occurred from Aug.
29, 2023, through Feb. 15, 2024 (postponement period). As a result, affected individuals
and businesses will have until Feb. 15, 2024, to file returns and pay any taxes that were
originally due during this period.
This means, for example, that the Feb. 15, 2024, deadline will now apply to:
•

•
•
•
•
•

Individuals who had a valid extension to file their 2022 return due to run out on Oct.
16, 2023. The IRS noted, however, that because tax payments related to these 2022
returns were due on April 18, 2023, those payments are not eligible for this relief.
Quarterly estimated income tax payments normally due on Sept. 15, 2023, and Jan.
16, 2024.
Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31,
2024.
Calendar-year partnerships and S corporations whose 2022 extensions run out on
Sept. 15, 2023.
Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023.
Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.

In addition, penalties for the failure to make payroll and excise tax deposits due on or after
Aug. 29, 2023, and before Sept. 13, 2023, will be abated as long as the deposits are made by
Sept. 13, 2023.
The IRS disaster assistance and emergency relief for individuals and businesses page has
details on other returns, payments and tax-related actions qualifying for relief during the
postponement period.

The IRS automatically provides filing and penalty relief 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 this relief.
It is possible an affected taxpayer may not have an IRS address of record located in the
disaster area, for example, because they moved to the disaster area after filing their return.
In these kinds of unique circumstances, the affected taxpayer could receive a late filing or

late payment penalty notice from the IRS for the postponement period. The taxpayer
should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but
whose records necessary to meet a deadline occurring during the postponement period are
located in the affected area. Taxpayers qualifying for relief who live outside the disaster
area need to contact the IRS at 866-562-5227. This also includes workers assisting the
relief activities who are affiliated with a recognized government or philanthropic
organization.

Additional tax relief

Individuals and businesses in a federally declared disaster area who suffered uninsured or
unreimbursed disaster-related losses can choose to claim them on either the return for the
year the loss occurred (in this instance, the 2023 return normally filed next year), or the
return for the prior year (2022). Taxpayers have extra time – up to six months after the
due date of the taxpayer's federal income tax return for the disaster year (without regard
to any extension of time to file) – to make the election. Be sure to write the FEMA
declaration number – DR-3597-EM − on any return claiming a loss. See Publication 547,
Casualties, Disasters, and Thefts, for details.
Qualified disaster relief payments are generally excluded from gross income. In general,
this means that affected taxpayers can exclude from their gross income amounts received
from a government agency for reasonable and necessary personal, family, living or funeral
expenses, as well as for the repair or rehabilitation of their home, or for the repair or
replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for
details.

Additional relief may be available to affected taxpayers who participate in a retirement
plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible
to take a special disaster distribution that would not be subject to the additional 10% early
distribution tax and allows the taxpayer to spread the income over three years. Taxpayers
may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and
guidance for their participants to follow.
The IRS may provide additional disaster relief in the future.

The tax relief is part of a coordinated federal response to the damage caused by this storm
and is based on local damage assessments by FEMA. For information on disaster recovery,
visit DisasterAssistance.gov.