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 Indiana
Storm, Flood and Tornado Victims May Qualify for IRS Disaster Relief
Victims of recent severe storms, floods,
and tornadoes in
Indiana
may qualify for tax relief from the Internal Revenue Service.
Following severe storms and tornadoes on
May 30 and continuing, the federal government declared Adams, Bartholomew,
Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton,
Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson,
Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey,
Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo,
Washington and Wayne counties a
presidential disaster area qualifying for individual assistance.
As a result, the IRS is postponing until
Aug. 29 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 May 30 and Aug. 29.
In addition, the IRS will waive the
failure to deposit penalties for employment and excise deposits due on or after
May 30 and on or before June 16, as long as the deposits were made by June 16.
If an affected taxpayer receives a penalty
notice from the IRS, the taxpayer should call the telephone number on the notice
to have the IRS abate any interest and any late filing or late payment penalties
that would otherwise apply. Penalties
or interest will be abated only for taxpayers who have an original or extended
filing, payment or deposit due date, including an extended filing or payment due
date, from May 30 to Aug 29.
IRS computer systems automatically
identify taxpayers located in the covered disaster area and apply automatic
filing and payment relief. Affected
taxpayers who reside or have a business located outside the covered disaster
area must call the IRS disaster hotline at 1-866-562-5227 to request tax relief.
Affected Taxpayers
Taxpayers considered to be affected
taxpayers eligible for the postponement of time to file returns, pay taxes and
perform other time-sensitive acts are those taxpayers who live, and businesses
whose principal place of business is located, in the covered disaster area.
Taxpayers not in the covered disaster area, but whose books, records, or
tax professionals’ offices are in the covered disaster area, are also entitled
to relief.
Casualty Losses
Affected taxpayers in a presidentially
declared disaster area have the option of claiming disaster-related casualty
losses on their federal income tax return for either this year or last year. Claiming
the loss on an original or amended return for last year will get the taxpayer an
earlier refund, but waiting to claim the loss on this year’s return could
result in a greater tax saving, depending on other income factors.
Individuals
may deduct personal property losses that are not covered by insurance or other
reimbursements, but they must first subtract $100 for each casualty event and
then subtract ten percent of their adjusted gross income from their total
casualty losses for the year.
Affected taxpayers claiming the disaster
loss on last year’s return should put the Disaster Designation
“Indiana/Severe Storms, Flooding, and Tornadoes” at the top of the form so
that the IRS can expedite the processing of the refund.
For more information
see: http://www.irs.gov/newsroom/article/0,,id=183929,00.html
or contact our office.
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