IRS Offers Tax Relief to Those Affected by Disasters
If you are living in an area identified by the government as a federal disaster zone, you may qualify for special IRS tax assistance and relief.
A disaster has an immediate impact on your personal welfare and potential long-term consequences to your ability to sustain work. Special tax laws may grant you an extension to file and pay your taxes, and losses you have sustained can be deducted, helping you to recover financially.
Here are five things you need to know from the IRS regarding any major disaster area.
- Check the IRS web site for specific information on your area.
The IRS maintains a log of all recent federally declared disaster areas. You can link to the IRS news release and any specific information about your area, as well as any recent tax provisions that the IRS has rolled out for your benefit.
- The IRS has tax advice on how to prepare yourself or your business for a disaster.
Tips and suggestions are available here on what records to keep, and how to securely store them, as well as links to IRS workbooks that can help you document your belongings or business equipment so that any write-offs or losses can easily be computed should the need arise.
They also provide some practical advice on business emergency planning so that you can quickly recover and start operating again.
- The IRS offers leniency during a disaster.
Even if your area has not been severely affected, this doesn't mean you have not been. The IRS web site says that they "know that major disasters and emergencies in your area will affect many families and businesses. While we hope you are spared any loss, we realize this may not be true for everyone, and we want to let you know how the IRS can help."
If a hardship has affected your ability to pay your taxes, please, call the IRS and let them know. There may be options available for you to defer your debt until you are financially stable.
- IRS publications can assist you in determining any deductable losses.
Losses relating to your home, household items and vehicles can generally be deducted, if you have not been reimbursed by an insurance payout. The following IRS publications will assist you.
Publication 584, Casualty, Disaster, and Theft Loss Workbook
Publication 584B, Business Casualty, Disaster, and Theft Loss Workbook.
Publication 2194, Disaster Loss Kit for Individuals
Publication 2194B, Disaster Loss Kit for Businesses
5. The IRS web site is a hub for many other online disaster resources.
In addition to the multiple web pages devoted to tax relief, the IRS also has linked other government sites that provide you with other personal and business assistance.
One of the most helpful links is to DisasterAssistance.gov, a one stop web portal that consolidates information from 17 US government agencies. Other links are available to FEMA, the Small Business Administration (for low-interest business loans and other business financial assistance), Ready.gov and GovBenefits.gov.
Access information on IRS disaster tax relief here: Disaster Assistance and Emergency Relief for Individuals and Businesses
More from this contributor:
Can't pay your tax bill? You may qualify for non-collectible financial hardship
Get assistance from the IRS Taxapayer Advocate Service
10 reason whay taxpayers owe the IRS
A disaster has an immediate impact on your personal welfare and potential long-term consequences to your ability to sustain work. Special tax laws may grant you an extension to file and pay your taxes, and losses you have sustained can be deducted, helping you to recover financially.
Here are five things you need to know from the IRS regarding any major disaster area.
- Check the IRS web site for specific information on your area.
The IRS maintains a log of all recent federally declared disaster areas. You can link to the IRS news release and any specific information about your area, as well as any recent tax provisions that the IRS has rolled out for your benefit.
- The IRS has tax advice on how to prepare yourself or your business for a disaster.
Tips and suggestions are available here on what records to keep, and how to securely store them, as well as links to IRS workbooks that can help you document your belongings or business equipment so that any write-offs or losses can easily be computed should the need arise.
They also provide some practical advice on business emergency planning so that you can quickly recover and start operating again.
- The IRS offers leniency during a disaster.
Even if your area has not been severely affected, this doesn't mean you have not been. The IRS web site says that they "know that major disasters and emergencies in your area will affect many families and businesses. While we hope you are spared any loss, we realize this may not be true for everyone, and we want to let you know how the IRS can help."
If a hardship has affected your ability to pay your taxes, please, call the IRS and let them know. There may be options available for you to defer your debt until you are financially stable.
- IRS publications can assist you in determining any deductable losses.
Losses relating to your home, household items and vehicles can generally be deducted, if you have not been reimbursed by an insurance payout. The following IRS publications will assist you.
Publication 584, Casualty, Disaster, and Theft Loss Workbook
Publication 584B, Business Casualty, Disaster, and Theft Loss Workbook.
Publication 2194, Disaster Loss Kit for Individuals
Publication 2194B, Disaster Loss Kit for Businesses
5. The IRS web site is a hub for many other online disaster resources.
In addition to the multiple web pages devoted to tax relief, the IRS also has linked other government sites that provide you with other personal and business assistance.
One of the most helpful links is to DisasterAssistance.gov, a one stop web portal that consolidates information from 17 US government agencies. Other links are available to FEMA, the Small Business Administration (for low-interest business loans and other business financial assistance), Ready.gov and GovBenefits.gov.
Access information on IRS disaster tax relief here: Disaster Assistance and Emergency Relief for Individuals and Businesses
More from this contributor:
Can't pay your tax bill? You may qualify for non-collectible financial hardship
Get assistance from the IRS Taxapayer Advocate Service
10 reason whay taxpayers owe the IRS
Published by James Skye - Featured Contributor in Business & Finance
As a 15-year IRS employee with a strong freelance background, my education and experience affords me the opportunity to contribute articles relating to personal finances and taxes. I also enjoy writing relig... View profile
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