IRS Tax Relief – Impact of Winter Storm Fern
TN-2026-01, April 3, 2026
The IRS has announced federal tax relief for individuals and businesses in designated Tennessee counties impacted by Winter Storm Fern, extending several filing and payment deadlines to May 22, 2026. This relief applies to tax obligations originally due between January 22 and May 22, 2026.
What This Means for Employees
Following the disaster declaration issued by the State of Tennessee, individuals and households that reside or have a business in Cheatham, Chester, Clay, Davidson, Decatur, Dickson, Hardeman, Hardin, Henderson, Hickman, Lawrence, Lewis, Macon, Maury, McNairy, Perry, Robertson, Rutherford, Summer, Trousdale, Wayne, Williamson and Wilson counties qualify for tax relief. They now have additional time to:
• File individual federal income tax returns
• Make federal income tax payments, including payments normally due April 15, 2026
• Submit quarterly estimated tax payments, if applicable (e.g., for employees with side income or commissions)
Relief is automatically applied based on the employee’s IRS address of record; no action is required to qualify.
Employer & Payroll Considerations
Employers with affected employees should be aware that the IRS also provided limited payroll-related relief:
• Penalty abatement for payroll tax deposits due between January 22 and February 5, 2026, provided deposits were made by February 6, 2026
• Extended deadlines to file quarterly payroll tax returns normally due February 2 and April 30, 2026, now due May 22, 2026
IMPORTANT: Employee paycheck withholding, benefit deductions, and normal payroll processing requirements were not suspended.
Impact on Employee Benefits
This tax relief does not change or delay:
• Health insurance premiums
• COBRA elections or payment timelines
• 401(k) or retirement plan contributions
• HSA/FSA payroll deductions
• Benefit eligibility or enrollment rules
Employees may, however, be eligible to claim disaster-related casualty losses on their federal tax return if they experienced storm-related property damage.
Next Steps for Employers
If you have employees located in the affected Tennessee counties, we suggest:
• Communicating these extended tax deadlines to impacted employees
• Coordinating with payroll teams to ensure correct filing timelines
• Encouraging employees to consult their tax advisor if they were personally affected
For full details, view the IRS announcement: IRS Tax Relief for Winter Storm Fern
Navia and our staff’s suggestions or recommendations shall not constitute legal advice. No content on our website can be construed as tax or legal advice, and Navia may not be considered your legal counsel or tax advisor. Clients are encouraged to consult with their tax advisor and/or attorney to determine their legal rights, responsibilities, and liabilities. This includes the interpretation of any statute or regulation, federal, state, or local; and/or its application to the clients’ business activities.