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Tax Relief for Fall 2008 Hurricane Victims

IRS Gives Break on Filing Taxes Due to Hurricanes Ike and Gustav

Sep 30, 2008

Federal Disaster Area? Get a Tax Extension , Michele Sandusky with morguefile

Certain federal tax filing deadlines have been extended until January 5, 2009 for victims of Hurricanes Ike and Gustav who reside in presidential disaster areas.

In the wake of Hurricane Gustav in September 2008, IRS Commissioner Doug Shulman said, “As residents of Louisiana return to their homes….taxes are one thing they won’t need to worry about. This relief gives them extra time to get their lives in order before having to deal with their tax matters.”

Throughout the 2008 hurricane season, the IRS has issued press releases stating who qualifies for additional tax extensions and other IRS disaster relief. Recently, the IRS announced postponed filing and payment deadlines for individuals and businesses affected by Hurricane Ike and Hurricane Gustav.

Who Qualifies for IRS Tax Relief?

The IRS extends relief to those who live in government-declared presidential disaster areas. The IRS has specifically granted relief for victims in certain counties of Texas for Hurricane Ike, and certain Louisiana parishes for both Hurricane Ike and Hurricane Gustav. Lists of affected Texas counties and Louisiana parishes can be found in hurricane-specific press releases on the IRS website.

What Kind of Relief is Available for Victims of Hurricanes Ike and Gustav?

Taxpayers who live or operate businesses in one of the disaster areas are granted the following relief:

Tax returns, payments, and other “time-sensitive” acts originally due between September 7, 2008 and January 4, 2009 are extended until January 5, 2009. Among other types of returns, this will cover extended individual returns due on October 15, 2008, individual estimated tax payments, and extended corporate returns due on September 15, 2008.
For affected businesses, the IRS has waived penalties for failure to deposit employment or excise tax payments due between September 8, 2008 and September 21, 2008; however, penalties are waived only if deposits are made on or before September 22, 2008.

The IRS previously granted a 7-day filing relief for taxpayers with September 15th deadlines; the January 5, 2009 extension essentially extends that previous relief.

In addition to taxpayers who live or own businesses in a covered disaster area, taxpayers whose tax preparers, books, or records are located in the disaster area qualify for relief as well. Certain relief workers are also eligible.

Other Considerations: Those Who Do Not Qualify, Tax Notices, and Other Storms

Taxpayers affected by Hurricane Ike or Hurricane Gustav who do not qualify for tax relief based on residency may call the IRS Disaster Hotline (1-866-562-5227) to request tax relief.

The IRS will attempt to automatically identify affected taxpayers and apply relief, but any covered taxpayer who receives a penalty notice should contact the IRS using the number on the notice to request abatement of any interest and/or penalties that should be waived pursuant to temporary hurricane tax relief.

Taxpayers affected by other storms, including Tropical Storm Fay from August 2008 and Hurricane Dolly from July 2008, are eligible for similar relief; however, those deadlines fall before January 2009. Taxpayers affected by Tropical Storm Fay or Hurricane Dolly should visit the IRS website for more information.

Resource: IRS Website

The copyright of the article Tax Relief for Fall 2008 Hurricane Victims in Personal Tax Planning is owned by Lena Gott. Permission to republish Tax Relief for Fall 2008 Hurricane Victims in print or online must be granted by the author in writing.