Tax Relief for Natural Disasters
Although the IRS is traditionally portrayed as a heartless entity, there are some occasion when the IRS does grant tax relief to those affected by a natural disaster or state of emergency. They call this as tax relief in disaster situations.
For the purposes of this discussion we are going to refer to one of the relief previous granted and see what it covers. In this case, relief was granted for Hurricane victims in Pennalyvania. On September 13, 2011, victims of Hurricane Irene were granted tax relief. The grant specifies the area where the individuals and businesses must reside in to qualify for the tax relief.
On this particular one, the declaration permitted the IRS to postpone certain tax deadlines. The IRS also waived penalties for failing to deposit employment and excise tax deposit due on dates that were interrupted by the hurricane. They extended the time period for individuals, corporations, estate, and trust, partnership, employment and etc.
Those affected by the disaster were also given the option to claim disaster related casuality losses on their federal income tax return for either this year or last year.
So if you are unfortunate to have to deal with a disaster situation, make sure to check with the IRS to see if you are granted any tax relief at all.