Tax Relief for Victims of Floods and Storms

By: Charles L. Telk Jr., CPA, Senior Tax Advisoremail

Earlier this year, the IRS announced that it would provide tax relief for disaster-stricken counties in Arkansas, Colorado, Georgia, Maine, Mississippi, Missouri, and Oklahoma. Now, based on more recent floods and storms, the list has grown to include Iowa, Indiana, and Wisconsin. Businesses, retirees, and self-employed individuals who owe quarterly payments or who must file various returns will have extra time to do both. Due dates vary but you can find details for your state and county on the IRS Web at:  http://www.irs.gov (click on: “IRS Provides Disaster Relief to Ike Victims”) Other Affected Taxpayers

Tax relief is not limited to taxpayers whose homes are in the covered disaster areas. Those whose books, records, or tax professionals’ offices are located within the designated disaster areas are also entitled to tax relief. And, relief workers affiliated with recognized government or philanthropic organizations assisting in the covered disaster areas are granted relief. Immediate Help

Taxpayers in presidentially declared disaster areas who suffer uninsured or unreimbursed property damage have the option of claiming those losses on their 2007 returns or waiting to claim them on this year’s return. If you claim the loss on your 2007 return, you may be able to get a faster refund. But depending on the income factors involved, waiting to claim the loss on your 2008 return may result in a larger tax savings, according to the IRS.

The IRS reminds taxpayers who are claiming the loss on their 2007 returns, to include a Disaster Designation, such as “Iowa/Severe Storms, Tornadoes and Flooding” at the top of the return. For specific instructions for your state, check the IRS list of recent disaster tax relief announcements, or contact us. Our tax advisers can help calculate your casualty loss and file or amend your return.