Tax Relief in Disaster Situations

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Tax Relief in Disaster Situations
Eugenia P. Tabon Stakeholder Liaison

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Tax Relief in Disaster Situations

• Special tax law provisions may
• Grant extension periods for return filings and
  making tax payments
  
• Abate interest and late filing or late payment
  penalties
  
• Abate penalties for employment and excise taxes

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Potential Financial Relief

• Obtain faster refunds for individuals and
  businesses
  
• Claim losses related to the disaster on the
  previous year tax return, usually by filing an
  amended return, or
  
• Electronically file original tax return for the
  year the loss occurred

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Disaster Area

• Is determined by the President
• Warrants Federal disaster assistance
• Known as Presidentially Declared Disaster
  Areas
  

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Retrieved on August 1, 2007
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Tax Information For Businesses

•  Industry Issue FocusThe Large and Mid-Size
  Business Division (LMSB) of the IRS is
  implementing an Industry Issue Focus (IIF)
  approach to compliance as part of its overall
  issue management strategy. Under this approach,
  issues are identified and prioritized based on
  industry impact and level of compliance
  risk.Small Business and Self-Employed One-Stop
  ResourceThis section offers a broad range of
  resources across federal and state agencies, as
  well as industry/profession specific information
  for self-employed entrepreneurs, employers and
  businesses
• Tax Relief in Disaster SituationsTax relief
  provisions for disaster situations.

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Tax Relief in Disaster Situations Updated Sept.
10, 2007

• Special tax law provisions may help taxpayers
  recover financially from the impact of a
  disaster, especially when the president declares
  their location to be a major disaster area.
  Depending on the circumstances, the IRS may grant
  additional time to file returns and pay taxes.
  Both individuals and businesses in a
  presidentially declared disaster area can get a
  faster refund by claiming losses related to the
  disaster on the tax return for the previous year,
  usually by filing an amended return.

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Tax Relief in Disaster Situations

• Relief Granted Recently
• Relief for storm victims in Kings and Queens
  counties, N.Y., see News Release
  
• Relief for Illinois storm victims, see News
  Release
  
• Relief for Minnesota storm victims, see News
  Release
  
• Relief for Ohio storm victims, see News Release
• Relief for August 2007 Oklahoma storm victims,
  see News Release
  
• Relief for Wisconsin storm victims, see News
  Release
  
• Extended Relief for May 2007 storm, tornado
  victims in Kiowa County, Kan., see News Release
  
• Tax Relief for Hurricane Katrina, Rita and Wilma
  Victims
  
• The IRS offers tax assistance to victims of the
  2005 Gulf Coast hurricanes. To see what's
  available, visit
  
• Help for Hurricane Victims Information on Tax
  Relief, Charitable Issues
  
• Information on Taxes and Disasters
• Frequently Asked Questions for Disaster Victims

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FAQs for Disaster Victims

•  Guidance for Those Affected by
  DisastersHeadliners 149, 151, 153, 156, 158, 167,
  172, 175, 180 and 182 have been combined to show
  all business-related FAQs for disaster victims.
  As additional FAQs are developed, they will be
  added to this page.
• Amended Returns (updated 6/1/07)
• Casualty Loss (Valuations and Section 165 (i))
  (updated 6/1/07)
  
• Change of Address (updated 6/1/07)
• Copies of Tax Returns (updated 6/1/07)
• Hurricane Katrina, Wilma, Rita Guidance (updated
  6/1/07)
  
• Penalty and Interest (updated 6/1/07)
• Realized Gains on Main Home
• Mitigation Payments (updated 6/1/07)
• Sale of Home (updated 8/3/07)
• Taxable State Recovery Fund Payments (updated
  6/1/07)
  
• Travel Expenses (updated 6/1/07)

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Is Your Business Prepared?

• What if you or your business had to deal with a
  sudden disaster?
  
• Do you have a plan?
• Visit Homeland Securitys website at
  www.ready.gov
  

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NC Stakeholder Liaison Contacts

• IRS State Disaster Assistance Coordinator (SDAC)
  
  
• Evelyn.Williamson_at_irs.gov or
• [phone]
• Avery Henline [phone]
• Evette Davis [phone]
• Eugenia Tabon [phone]

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State Disaster Assistance Coordinators (SADC)

• SADC will determine the need to assign disaster
• assistance representatives to assist victims
  with
  
• Distribution of disaster kits.
• Advice about reconstructing lost financial
  records.
  
• Tax counseling on the determination of deductible
  casualty losses.
  
• Preparing original and/or amended tax returns to
  claim disaster losses.
  
• Securing copies of tax returns or tax return
  transcripts without charge.
  
• Preparation of Form W-4 to change withholding
  allowances.
  

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Additional Sources of Information

• IRS Publication 547 - Casualties, Disasters and
  Thefts
  
• Publication 2194 Disaster Loss Kit For
  Individuals
  
• Publication 2194B Disaster Loss Kit For
  Businesses
  
• www.irs.gov
• Local IRS Taxpayer Assistance Center

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Questions?