Federal
The Internal Revenue Service announced tax relief for individuals and businesses in the entire state of Kentucky affected by severe storms, straight-line winds, flooding, and landslides that began on Feb. 14, 2025. These taxpayers now have until Nov. 3, 2025, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in the entire state qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Feb. 14, 2025, and before Nov. 3, 2025, are granted additional time to file.
As a result, affected individuals and businesses will have until Nov. 3, 2025, to file returns and pay any taxes that were originally due during this period.
The Nov. 3, 2025, deadline applies to individual income tax returns and payments normally due on April 15, 2025. The Nov. 3 deadline also applies to 2024 contributions to IRAs and health savings accounts for eligible taxpayers. This relief also applies to the estimated tax payments normally due on April 15, June 16, and Sept. 15, 2025. Penalties on payroll and excise tax deposits due on or after Feb. 14, 2025, and before March 3, 2025, will be abated as long as the tax deposits are made by March 3, 2025.
The Nov. 3, 2025, deadline also applies to affected businesses:
- Quarterly payroll and excise tax returns normally due on April 30, July 31, and Oct. 31, 2025.
- Calendar-year partnership and S corporation returns normally due on March 17, 2025.
- Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
- Calendar-year tax-exempt organization returns normally due on May 15, 2025.
Sources:
Kentucky
KY has said they will follow IRS declaration disasters; HOWEVER, interest will not be waived. KY DOR, while they can extend a filing date (for example, until Nov. 3), and they can waive penalties, they cannot waive interest. So, even though the KY deadlines have been extended, interest will still be due on "late payments" absent a change by the General Assembly before the end of this Session.
Effective 1/1/25 the KY interest rate is 10% on late payments.
Kentucky Local Governments
LOUISVILLE:
The Louisville Metro Revenue Commission will honor the recently announced IRS special tax relief for individuals and businesses in Kentucky affected by severe storms, straight-line winds, flooding and landslides that began on Feb. 14, 2025.
This tax relief allows affected taxpayers whose tax year 2024 Occupational License return filing deadline is on or after Feb. 14, 2025, until Nov. 3, 2025, to file the net profit tax return and submit the corresponding tax payment. Under the provisions of LMCO 110.07(A), Louisville Metro honors federal extensions related to disaster relief for filing of the occupational license tax return on net profits, including the payment of tax due.
Late filing and payment penalties will be waived for those affected taxpayers seeking this relief, as long as such payments are paid on or before Nov. 3, 2025.
This extension does not apply to the following:
- quarterly estimated occupational license tax payments due April 15, June 15, & September 15, 2025.
- quarterly withholding tax returns and tax payments due April 30, July 31, & October 31, 2025.
- monthly withholding tax deposits.
State and Local law do not allow the Revenue Commission to extend these due dates.
Penalties and interest apply to taxes that remain unpaid after the due date. Interest and penalty continue to accrue until the tax balance is paid in full.
LEXINGTON:
LFUCG will follow the IRS guidelines.
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Please do not hesitate to reach out regarding any questions, concerns or comments to Cash Cassady at ccassady@kycpa.org.