Kauai taxpayers get federal filing deadline extension after Kona-low storms

Kauai residents, sole proprietors and small businesses hit by March’s Kona low now have until July 8 to file certain federal tax returns and make payments that were originally due on or after March 10, a delay that can keep penalties and interest from piling up as recovery continues.

The Internal Revenue Service said the postponement covers taxpayers who live or run a business in Hawaii, Honolulu, Kauai and Maui counties, following Governor Josh Green’s disaster request. Green said he was “pleased and grateful” that the federal action brought relief to Hawaii taxpayers.

For Kauai households, the extension covers individual income tax returns and payments. For sole proprietors and other small businesses, it also covers certain business tax filings, quarterly payroll filings and certain excise tax payments. The IRS said penalties on payroll and excise tax deposits due March 10 through March 24 will be abated if those deposits are made by March 25.

That extra time matters for island taxpayers still dealing with storm damage, disrupted records and cash flow strains after the Kona low began March 10. The Hawaii Department of Taxation said the statewide event ran from March 10 through March 23 and offers separate state income tax relief through July 20, 2026. Taxpayers seeking that relief must file Form L-115, generally through Hawaii Tax Online, and the department says the form should be filed as soon as possible, but no later than July 20.

The IRS also said taxpayers outside the disaster area may still qualify if the records needed to meet a deadline were located in the covered area, or if they were otherwise affected and contact IRS Special Services. Federal disaster assistance announced April 16 for Kona low flooding applies to Honolulu, Hawaii and Maui counties, while the IRS tax relief also includes Kauai, giving island taxpayers a longer runway to catch up without adding federal penalties to an already expensive storm season.