Tax News

CCH (cch.taxgroup.com) reports:

The IRS has extended tax return filing and payment deadlines for victims of the Southern California wildfires. Taxpayers in the presidentially declared disaster area consisting of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura counties will have until January 31, 2008, to file returns, pay taxes and perform other time-sensitive acts. The extended deadline applies to items due on or after October 21, 2007, when the fires began, and on or before January 31, 2008. This includes the federal withholding tax return, Form 941, normally due October 31, and the estimated tax payment for the fourth quarter, normally due January 15. In addition, the IRS is waiving the failure to deposit penalty for employment and excise deposits due on or after October 21, 2007, and on or before November 5, 2007, as long as the deposits are made by November 5, 2007.
Affected taxpayers who receive a penalty notice from the IRS should call the number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply during the period from October 21, 2007, to January 31, 2008, or October 21, 2007, through November 5, 2007, for failure to deposit penalties. No penalty or interest will be abated for taxpayers that do not have a filing, payment or deposit due date, including an extended filing or payment due date, during this period.
IRS computer systems automatically identify taxpayers located in the covered disaster area and apply automatic filing and payment relief. Thus, taxpayers within the covered disaster area do not need to identify themselves as affected by the wildfires by writing on their returns or using the disaster designation in their tax software. However, affected taxpayers who reside or have a business located outside the covered disaster area are required to call the IRS disaster hotline at 1-866-562-5227 to identify themselves as eligible for disaster relief.
Affected taxpayers also have the option of claiming disaster-related casualty losses on their federal income tax returns for either 2007 or 2006. In addition, affected taxpayers who claim the disaster loss on their 2006 returns should put the disaster designation "California Wildfires" at the top of the form so that the IRS can expedite the processing of the refund.
IR-2007-178, 2007FED ¶46,693
IR-2007-178, FINH ¶30,566
Other References:
Code Sec. 6081
CCH Reference - 2007FED ¶36,789.213
CCH Reference - FINH ¶20,345.75
CCH Reference - FINH ¶20,355.50
Code Sec. 6161
CCH Reference - FINH ¶20,585.35
Code Sec. 7508A
CCH Reference - 2007FED ¶42,687C.22
CCH Reference - FINH ¶22,560.30
Tax Research Consultant
CCH Reference - TRC FILEIND: 15,204.25
CCH Reference - TRC FILEBUS: 15,110