Mississippi Water Crisis Victims Get Tax Relief from IRS
Upcoming tax filing and payment deadlines are extended for residents and businesses impacted by the Mississippi water crisis.


The IRS announced that victims of the water crisis in Mississippi (including Jackson, Miss.) that started on August 30, 2022, will have more time to file various individual and business tax returns and make tax payments. Specifically, impacted taxpayers will have until February 15, 2023, to file and pay tax returns and payments due between August 30 and February 14.
The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in Hinds County (which includes Jackson, Miss.) qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other areas designated by FEMA later.
The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the water crisis. When requesting copies of a tax return or a tax return transcript, write "Mississippi Water Crisis" in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes relief workers affiliated with a recognized government or philanthropic organization, and anyone visiting the area who was killed or injured as a result of the disaster.
Deadlines Extended
The deadlines that are pushed back for Mississippi water crisis victims include extended 2021 personal income tax returns that would normally be due on October 17, 2022. They are now due on February 15, 2023. However, payments for 2021 income taxes that were due on April 18, 2022, are not extended.
Businesses with an original or extended income tax due dates within the affected time period also have more time to file and pay taxes. This includes partnerships and S corporations with 2021 tax year extensions expiring on September 15, and corporations with an extension expiring on October 17.
Quarterly estimated tax payments that are due September 15, 2022, and January 15, 2023, are also extended until February 15. The due date for quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023, are extended to February 15, too. Penalties on payroll and excise tax deposits due from August 30 to September 13 are also waived as long as the deposits are made by September 14, 2022.
Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.
Deduction for Damaged or Lost Property
Victims of the Mississippi water crisis may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.
The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any personal property damage or losses in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the Mississippi water crisis, the number is EM-3582-MS.
If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for the Mississippi water crisis, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("Mississippi Water Crisis") in bold letters at the top of the form. See IRS Publication 547 for details.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.
-
How Five States Are Worse Off After Trump’s Cuts to SNAP and Medicaid
State Tax Due to Trump's new tax law, some states will experience a greater impact than others.
-
Happiness Improves at Age 50, Right? Maybe Not for Everyone
New thinking about how happiness changes over our lifetimes shows that one group in particular gains the most contentment after age 50.
-
The Most Tax-Friendly State for Retirement in 2025: Here It Is
Retirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Ask the Editor, August 1: Tax Questions on Standard Deductions
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on claiming standard deductions on your tax return.
-
Tariff Stimulus Checks Coming? New Proposal Seeks Tax Rebates for U.S. Workers
Tax Breaks A new GOP bill proposes to send $600 in tariff rebate checks to eligible taxpayers. Is there a catch?
-
Biggest Winners and Losers in Trump's New Tax Plan
Tax Law Trump’s mega tax overhaul, known as the ‘One Big Beautiful Bill,’ has distinct winners and losers. Which group do you fall into?
-
Ask the Editor, July 25: Questions on Four New Tax Deductions
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on four new tax deductions in the "One Big Beautiful Bill."
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)
Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund, a smaller one or something in between next year. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ Pockets
Tax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's Finances
Tax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.