The Internal Revenue Service announced Tuesday that individuals and businesses in Chaves, Lincoln, Otero and Valencia counties can postpone various federal tax deadlines following severe storms, flooding and landslides that began June 23.
The relief covers quarterly estimated tax payments normally due Sept. 15 and Jan. 15, along with business tax returns and extensions that would expire between now and early 2026, according to an IRS press release.
“These taxpayers now have until Feb. 2, 2026, to file various federal individual and business tax returns and make tax payments,” the IRS said in the announcement.
The tax relief follows a federal emergency declaration President Donald Trump approved July 10 after the entire New Mexico congressional delegation urged his administration to act. The declaration allows the Federal Emergency Management Agency to coordinate disaster relief at 75% federal funding.
Record flooding devastates Ruidoso
The worst damage occurred in Ruidoso, where monsoon rains falling on wildfire burn scars caused the Rio Ruidoso to surge to a record-breaking 20.24 feet on July 8 — nearly five feet higher than the previous record of 15.86 feet set in 2024.
The flooding killed three people, including two children ages 4 and 7 from a Fort Bliss military family, and a 64-year-old retiree whose RV was swept away. Emergency crews conducted 65 water rescues as entire homes floated down the swollen river.
“The officers came, they told me, ‘You’ve got to get out, it’s bad, it’s bad,'” Ruidoso resident Taylor Sanchez told Source New Mexico, describing how deputies evacuated her trailer park before floodwaters destroyed her home.
At least 300 people were displaced by the flooding, which also damaged the Ruidoso Downs Racetrack and forced cancellation of the 2025 racing season.
County-by-county impact
The four affected counties represent a significant portion of south-central New Mexico:
- Chaves County: 63,561 residents, including Roswell
- Lincoln County: 19,401 residents, including Ruidoso
- Otero County: 68,835 residents
- Valencia County: 79,141 residents, part of the Albuquerque metro area
Together, these counties account for about 11% of New Mexico’s total population.
Extended deadlines provide relief
The Feb. 2, 2026, deadline applies to individuals with valid extensions for their 2024 returns that expire Oct. 15, 2025, and businesses, including partnerships and S corporations with September extensions.
Quarterly payroll and excise tax returns normally due July 31, Oct. 31, 2025, and Jan. 31, 2026, also receive extensions.
However, the IRS noted that payments for returns already on filing extensions are not eligible for additional time since extensions apply only to filing, not payments.
Taxpayers who receive late filing or payment penalty notices with due dates during the postponement period should call the number on the notice to have penalties waived.
Disaster loss deductions available
Affected taxpayers can claim disaster-related casualty losses on either their 2025 tax return or 2024 return for the previous year. They have until Oct. 15, 2026, to make this election.
The relief also waives usual fees for copies of previously filed tax returns. Taxpayers should write “FEMA disaster declaration number 3628-EM” in bold letters on Form 4506 requests.
Second round of relief
This marks the second round of federal tax relief for some affected counties following the devastating South Fork and Salt fires that burned through Lincoln and Otero counties in summer 2024.
The IRS automatically identifies taxpayers in disaster areas for relief, but those outside the affected counties who have records stored in disaster areas can call 866-562-5227 to request extensions.
Tax relief workers helping with disaster response also qualify for the extended deadlines.
Rep. Gabe Vasquez, whose district includes parts of the affected area, said the congressional delegation’s push for federal assistance was essential.
“The impacts of this historic flood require federal resources for adequate recovery and ongoing mitigation efforts,” Vasquez said in a statement. “There’s no other way around it.”
