Disaster Tax Relief

The IRS announces 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, 2008Covered 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.
Indiana: Severe winter storms and flooding Jan. 5, 2008Covered disaster area: Carroll, Cass, Elkhart, Fulton, Jasper, Marshall, Pulaski, Tippecanoe and White counties	Deadlines to file and pay taxes and perform other time-sensitive acts falling on or after Jan. 7, 2008, and on or before March 31, 2008, are postponed to March 31, 2008.Penalty for failure to deposit employment and excise taxes due on or after Jan. 7, 2008, and on or before Jan. 22, 2008, are waived as long as taxes were deposited by Jan. 22, 2008.

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).