Disaster Tax Relief


The IRS has announced 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.


As of Jan. 14, 2007, 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 after Jan. 14, 2007. See the tax relief granted for your state below.

Disaster
Relief
Nevada: Severe flooding Jan. 5, 2008

Covered disaster area: Clallam, Grays Harbor, King, Kitsap, Lewis, Mason, Pacific, Snohomish, Thurston and Wakhiakum counties
Deadlines to file and pay taxes and perform other time-sensitive acts falling on or after Jan. 5, 2008, and on or before March 5, 2008, are postponed to March 5, 2008.

Penalty for failure to deposit employment and excise taxes due on or after Jan. 5, 2008, and on or before Jan. 22, 2008, are waived as long as taxes were deposited by Jan. 22, 2008.
Oregon: Severe storms, flooding, landslides and mudslides beginning Dec. 1, 2007

Covered disaster area: Clatsop, Columbia, Polk, Tillamook, Washington and Yamhill counties
Deadlines to file and pay taxes and perform other time-sensitive acts falling on or after Dec. 1, 2007, and on or before Feb. 6, 2008, are postponed to Feb. 6, 2008.

Penalty for failure to deposit employment and excise taxes due on or after Dec. 1, 2007, and on or before Dec. 17, 2007, are waived as long as taxes were deposited by Dec. 17, 2007.
Washington: Severe storms and flooding Dec. 1, 2007

Covered disaster area: Clallam, Grays Harbor, King, Kitsap, Lewis, Mason, Pacific, Snohomish, Thurston and Wakhiakum counties
Deadlines to file and pay taxes and perform other time-sensitive acts falling on or after Dec. 1, 2007, and on or before Feb. 6, 2008, are postponed to Feb. 6, 2008.

Penalty for failure to deposit employment and excise taxes due on or after Dec. 1, 2007, and on or before Dec. 17, 2007, are waived as long as taxes were deposited by Dec. 17, 2007.
California: Severe wildfires beginning Oct. 21, 2007

Covered disaster area: Los Angeles, Orange, Riverside, San Bernadino, San Diego, Santa Barbara and Ventura counties
Deadlines to file and pay taxes and perform other time-sensitive acts falling on or after Oct. 21, 2007, and on or before Jan. 31, 2008, are postponed to Jan. 31, 2008.

Penalty for failure to deposit employment and excise taxes due on or after Oct. 21, 2007, and on or before Nov. 5, 2007, are waived as long as taxes were deposited by Nov. 5, 2007.
Indiana: Severe storms and flooding Aug. 15, 2007

Covered disaster area: Lake County
Deadlines to file and pay taxes and perform other time-sensitive acts falling on or after Aug. 15, 2007, and on or before Jan. 29, 2008, are postponed to Jan. 29, 2008.

Penalty for failure to deposit employment and excise taxes due on or after Aug. 15, 2007, and on or before Aug. 30, 2007, are waived as long as taxes were deposited by Aug. 30, 2007.


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 deductible and 10% of your adjusted gross income. As a reminder, 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).