The IRS announces special tax relief for victims of recent hurricanes, floods, earthquakes, tornadoes, droughts and wildfires.
If you are in the covered disaster areas of a recent natural disaster, you may qualify to receive an extension on your tax deadlines. Affected taxpayers include those living in the disaster areas, those outside the disaster areas whose tax records are located in the areas, businesses located in the disaster area and relief workers.
The IRS will automatically grant disaster tax relief to taxpayers in the covered disaster area. In other words, you will no longer need to self-identify by writing on your returns or using the disaster designation within tax software. However, if you live or have a business outside the covered disaster area, you will be required to call the IRS disaster hotline (1-866-562-5227) to receive disaster relief.
See the tax relief granted for your state below.
Disaster |
Relief |
Georgia: severe storms and flooding beginning Sept. 18, 2009
Covered Disaster Area: Bartow, Carroll, Catoosa, Chattooga, Cherokee, Cobb, Coweta, DeKalb, Douglas, Fulton, Gwinnett, Heard,
Newton, Paulding, Rockdale, Stephens and Walker counties
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Deadlines for affected taxpayers to file returns, pay taxes and perform other time-sensitive acts falling
on or after Sept. 18, 2009, and on or before Dec. 17, 2009, have been postponed to Dec. 17, 2009.
Failure to deposit penalty for employment and excise deposits due on or after Sept. 18, 2009, and on or before Oct. 5, 2009, as long
as the deposits are made by Oct. 5, 2009.
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New York: severe storms and flooding on Aug. 8, 2009
Covered Disaster Area: Cattaraugus, Chautauqua and Erie counties
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Deadlines for affected taxpayers to file returns, pay taxes and perform other time-sensitive acts falling
on or after Aug. 8, 2009, and on or before Oct. 7, 2009, have been postponed to Oct. 7, 2009.
Failure to deposit penalty for employment and excise deposits due on or after Aug. 8, 2009, and on or before Aug. 24, 2009, is waived as
long as the deposits were made by Aug. 24, 2009.
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Kentucky: severe storms, flooding and straight-line winds on Aug. 4, 2009
Covered Disaster Area: Jefferson county
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The IRS is postponing until Oct. 5, 2009, certain deadlines for taxpayers who reside or have a business in the disaster area.
The postponement applies to return filing, tax payment and certain other time-sensitive acts otherwise due between Aug. 4, 2009, and Oct. 5, 2009.
In addition, the IRS will waive the failure to deposit penalties for employment and excise deposits due on or after Aug. 4, 2009, and on or before
Aug. 19, 2009, as long as the deposits were made by Aug. 19, 2009.
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Hurricane Grants
The Housing and Economic Recovery Act of 2008 offers a new option to homeowners who previously claimed a casualty loss deduction resulting from hurricanes Katrina, Rita and Wilma.
Read the full article in IRS.gov for further details.
Midwestern Disaster Relief
The Emergency Economic Stabilization Act of 2008 provides additional relief for individuals in the Midwestern disaster area. Provisions include special exemption for those who house displaced individuals and Hope and Lifetime Learning credits.
Read the full article.
Other Relief Information:
- Casualty loss reminder — Affected taxpayers may claim a disaster-related casualty loss on their current-year returns or on amended returns for the prior year. Property losses not covered by insurance can be deducted, minus a $100 ($500 for 2009) deductible and 10% of your adjusted gross income. For disasters occurring in 2008 and 2009, the 10% floor does not apply to a net disaster loss (the excess of personal casualty losses attributable to a federally declared disaster over personal casualty gains). In addition, a net disaster loss is added to the standard deduction. You do not have to itemize deductions to claim the loss. As a reminder, amended returns including such deductions should have the appropriate disaster noted in red ink at the top. See IRS Publication 547 for details.
- The IRS will waive fees and expedite requests for copies of previously filed tax returns (Form 4506).
