2004 Hurricane Reilef
This issue discusses tax relief as a result of the recent Hurricanes.
HURRICANE RELIEF
Extensions - The Internal Revenue Service has announced special tax relief for Florida taxpayers in the Presidential Disaster Area that was struck by Hurricane Frances beginning Sept. 3, 2004. It also lengthened the extension period it had earlier granted for the disaster area counties struck by the storms Bonnie and Charley, most of which are also in the latest disaster area. Taxpayers in either disaster area generally will have until Dec. 30 to file tax returns and submit tax payments. The IRS will abate interest and any late filing or late payment penalties that would apply. To qualify for this relief, affected taxpayers should put "Hurricane Frances" in red ink at the top of the return This extension to file and pay does not apply to information returns, or to employment and excise tax deposits. However, the IRS may abate penalties on such deposits for affected taxpayers due to reasonable cause during the FTD Penalty Waiver period, provided they make the payment by September 20, 2004. Taxpayers whose specific disaster-related circumstances prevent them from making tax deposits within that Period may seek penalty abatements on a case-by-case basis.
Casualty losses are another area in which relief has been granted by the IRS. Affected taxpayers 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 "Hurricane Frances" in red ink at the top of the form so that the IRS can expedite the processing of the refund.
Other - The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers who need them to apply for benefits or to file amended returns claiming casualty losses.
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