Background & Scope
After severe storms and flooding that began December 10, 2025, FEMA declared a disaster in Blackfeet Indian Reservation, Lincoln, and Sanders counties in Montana. In response, the IRS issued relief notices under MT-2026-02, postponing various federal tax deadlines to May 1, 2026. (irs.gov)
Which Deadlines are Extended
Affected individuals and businesses now have until May 1, 2026, to file and pay:
- Federal individual and business tax returns originally due on or after December 10, 2025 through deadlines that fall before May 1, 2026. (irs.gov)
- Estimated tax payments due January 15, 2026 and April 15, 2026. (irs.gov)
- 2025 contributions to IRAs and Health Savings Accounts when the contribution deadlines fall in the postponement window. (irs.gov)
- Payroll and excise tax deposits due between December 10, 2025 and December 29, 2025, subject to abatement of penalties if made by December 29. (irs.gov)
- Quarterly payroll and certain excise tax returns normally due February 2 and April 30, 2026. (irs.gov)
Who Qualifies as an Affected Taxpayer
- Individuals or businesses residing in or with operations in the designated counties.
- Non-resident taxpayers doing business in those areas may also qualify.
- If you live outside but work through a practitioner in the impacted area, and records are maintained there for multiple clients, practitioners may petition for broader relief. (irs.gov)
How to Benefit and Avoid Penalties
- The IRS automatically identifies many affected taxpayers and applies the relief, but not always—if you're outside the area or uncertain, you may need to call IRS Special Services to claim relief. (irs.gov)
- Any penalties for failure-to-file / pay with due dates within the disaster window should be abated. If you get a notice, call the number on it. (irs.gov)
Real-world Example
Sarah owns a small retail shop in Sanders County, Montana. She had a business excise tax return originally due April 30, 2026. Because her business is in the disaster area, that deadline is extended to May 1, 2026. If she mails late but before May 1, she avoids late-filing penalties.
Meanwhile, she often sends $1,000 and $2,000 in remittances via physical checks to family abroad. Under the remittance tax rules noted in another article, those may incur a 1% excise tax depending on how she funds the transfer—not exempt simply because she’s eligible for disaster relief on other tax obligations.
Actionable Steps
- If you're in the affected Montana counties, mark May 1, 2026 as the new deadline for many filings and payments—use it instead of earlier dates for actions triggered between Dec 10, 2025 and May 1, 2026.
- Confirm with your tax advisor or IRS whether your tax deadlines were in the extension window—check payment schedules, sales/excise returns, payroll obligations.
- Maintain documentation showing residency or business presence in the designated areas.
- If you receive a penalty notice, act proactively—call the IRS; relief should apply.
Key Takeaways
- Relief is temporary and specific—only for disasters declared, only specific counties, and only certain taxes.
- Even if many deadlines are postponed, getting ready early is still wise—this is an extension, not forgiveness.
- Combine this relief with other changes (remittance transfer tax, new deductions) to understand full year tax exposure.