Tax professionals across Tennessee should be aware of federal and state tax relief measures granted in response to Winter Storm Fern, which began on January 22, 2026. Both the Internal Revenue Service (IRS) and the Tennessee Department of Revenue have announced extensions and penalty relief until May 22 for affected individuals and businesses in designated counties.
The relief applies to individuals, businesses located in the following 23 counties: Cheatham, Chester, Clay, Davidson, Decatur, Dickson, Hardeman, Hardin, Henderson, Hickman, Lawrence, Lewis, Macon, Maury, McNairy, Perry, Robertson, Rutherford, Sumner, Trousdale, Wayne, Williamson, and Wilson.
Federal Tax Relief (IRS)
Extended Federal Deadlines
The IRS has postponed many federal tax filing and payment deadlines to May 22, 2026, for affected taxpayers with original or extended due dates falling between January 22, 2026, and May 22, 2026. This includes:
- Individual income tax returns and payments
- Corporate, partnership, S corporation, and trust returns
- Estate, gift, and generation-skipping transfer tax returns
- Annual returns for tax-exempt organizations
- Quarterly payroll and certain excise tax returns normally due February 2 and April 30, 2026
- Estimated income tax payments originally due during the relief period
Taxpayers will not be subject to penalties for failure-to-pay estimated tax installments if postponed payments are made by May 22, 2026.
Penalty Relief for Payroll and Excise Tax Deposits
Penalties on payroll and excise tax deposits due on or after January 22 and before February 6, 2026, will be abated as long as deposits were made by February 6, 2026.
Automatic vs. Requested Relief
- The IRS will automatically apply relief to taxpayers whose address of record is within the disaster area.
- Taxpayers or practitioners outside the disaster area, but whose records are located within it, may request relief by contacting the IRS Special Services line at 866-562-5227.
- Practitioners with records for 10 or more affected clients should follow IRS guidance for bulk disaster relief requests.
Casualty Losses and Other Federal Provisions
- Eligible taxpayers may claim disaster-related casualty losses on either their 2026 or 2025 federal return.
- The deadline to elect this treatment for individual taxpayers extends to October 15, 2026.
- Returns claiming losses should include “Tennessee Winter Storm Fern”.
Other Relief
- Filing fee waivers are available for Forms 4506 and 4506-T when appropriately labeled.
- Certain government disaster relief payments may be excluded from gross income.
- Special relief may also apply to retirement plan and IRA distributions, including penalty-free disaster distributions and hardship withdrawals.
Tennessee Department of Revenue Relief
Franchise & Excise Tax Extensions
Consistent with the IRS action, the Tennessee Department of Revenue has extended franchise and excise tax filing and payment deadlines to May 22, 2026, for affected taxpayers located in the 23 counties identified by the IRS.
- Applies to returns and payments (including quarterly estimated payments) originally due on or after January 22, 2026
- Penalties and interest will not apply to qualifying returns and payments made by May 22, 2026
- Extensions are automatically applied to taxpayers with a primary business address on record in a covered county
- Due dates after May 22, 2026, are not affected
Other Tennessee Taxes (Case-by-Case Relief)
Automatic extensions do not apply to:
- Sales and use tax
- Business tax
- Other state-administered taxes
However, the Department will consider case-by-case extension requests for affected taxpayers unable to comply due to the storm.
Requesting a State Extension
To request an extension, affected taxpayers should email:
Revenue.DisasterExtension@tn.gov
Include:
- Business name
- Tennessee account number or entity ID
- Business location
- Brief description of how Winter Storm Fern impacted filing or payment ability
Relief for Tax Practitioners
The Department may grant extensions when:
- A taxpayer’s returns are prepared by a practitioner located in one of the affected counties, and
- The practitioner is unable to meet deadlines due to storm impacts
Practitioners should use the same extension request email address noted above to contact the Department of Revenue.
