FROM: Karen Moody, President/CEO

I have received inquiries from members about a filing delay for the February 2, 2026 deadlines due to the winter weather many states have experienced this week, and the winter weather anticipated for this weekend.

FEMA issued Emergency Declarations for Louisiana, Indiana, Arkansas, West Virginia, Tennessee, Kentucky, Maryland, North Carolina, Mississippi, Georgia, Virginia, and South Carolina (Disasters and Other Declarations | FEMA.gov). These Emergency Declarations do not authorize an automatic filing delay for IRS purposes.

I have been in contact with CEOs from several of the affected states as no relief has been granted to any.  Some of these states did not experience the devastation and prolonged loss of power and water we have in several areas of  Mississippi and are not pursuing relief. However, I have been in collaboration with Louisiana in our combined efforts to get relief for our members, many of whom we share.          

In July 2025, President Trump signed into law the Filing Relief for Natural Disasters Act (H.R. 517) as you may recall was featured in our August 2025 Newsletter. This Act expressly recognizes the governor’s role in determining that a natural disaster or severe weather event has caused significant hardship to taxpayers within the state and authorizes the governor to formally request federal tax filing and payment relief from the Secretary of the Treasury. This Act allows governors to help speed up the process for federal tax relief from the IRS which historically gets bogged down waiting on FEMA.   

MSCPA made a formal request to Governor Reeves to take action accordingly with emphasis placed on Forms 1099 (NEC most importantly), W-2s, Form 940, and Form 941 which are due Monday since January 31 falls on a weekend.  I received a call from his office saying the attorneys are looking into the matter now. We are bumped up very close to the filing deadline and with a looming federal government shutdown. However, we have to wait and see what unfolds. As you may know, yesterday Governor Reeves extended the property tax deadline in 49 counties until March 3, 2026, to waive late penalties. 

The impacted counties include:

Adams, Alcorn, Attala, Benton, Bolivar, Calhoun, Carroll, Chickasaw, Choctaw, Claiborne, Clarke, Clay, Coahoma, Desoto, Grenada, Hinds, Holmes, Humphreys, Itawamba, Jefferson, Lafayette, Leake, Leflore, Lowndes, Marshall, Monroe, Montgomery, Newton, Oktibbeha, Panola, Pontotoc, Prentiss, Quitman, Rankin, Smith, Sharkey, Sunflower, Tallahatchie, Tate, Tippah, Tishomingo, Tunica, Union, Warren, Washington, Webster, Wilkinson, Yalobusha and Yazoo.

I’d like to thank Jan Lewis for her guidance and working with her AICPA contacts as we navigate for tax relief. AICPA members should know the criteria for reasonable cause relief for natural disasters is indicated in the Internal Revenue Manual at IRM 20.1.1.3.2.2.2:

20.1.1.3.2.2.2 (10-19-2020)

Fire, Casualty, Natural Disaster, or Other Disturbance-Reasonable Cause

1. Determine if the taxpayer could not comply timely because the taxpayer was an "affected taxpayer" eligible for disaster relief as provided for in IRM 25.16.1.3, Identification of Covered Disaster Area, Postponement Period and Affected Taxpayers. Also see IRM 20.1.1.3.3.6, Official Disaster Area.
2. For taxpayers not considered an "affected taxpayer," reasonable cause relief from a penalty may be requested if there was a failure to timely comply with a requirement to file a return or pay a tax as the result of a fire, casualty, natural disaster, or other disturbance. However, one of these circumstances by itself does not necessarily provide penalty relief.
3. Penalty relief may be appropriate if the taxpayer exercised ordinary business care and prudence, but due to circumstances beyond the taxpayer’s control, they were unable to comply with the law.
4. Factors to consider include the following:
5. Timing
   1. Effect on the taxpayer’s business
   1. Steps taken to attempt to comply
   1. If the taxpayer complied when it became possible
6. The determination to grant relief from each penalty must be based on the facts and circumstances surrounding each individual case. Determine if the event resulted in a circumstance for which other penalty relief criteria may apply. For example, if the taxpayer was unable to access their records as the result of a fire. See IRM 20.1.1.3.2.2.3, Unable to Obtain Records. If the taxpayer, or responsible party, was unable to comply because they were hospitalized as the result of an accident. See IRM 20.1.1.3.2.2.1, Death, Serious Illness, or Unavoidable Absence.

Should any penalty notices appear due to a missed filing delay caused by this weather, this relief may be available.

I am waiting for a call back from MDOR to discuss W-2s that are due February 2. 

We are continually monitoring the situation and will keep you informed of any further developments through emails and on our website home page.