Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has extended return-filing and payment deadlines for victims of the severe storms, flooding, tornadoes and straight-line winds in Volusia County in Florida that was declared a federal disaster area on May 17, 2009. Persons who qualify for assistance have until July 16, 2009, to file returns, pay taxes and perform other time-sensitive acts otherwise due between May 17, 2009 and July 16, 2009. Affected taxpayers include those residing or having businesses in the disaster area, as well as persons living outside the covered disaster areas whose books, records, or tax professionals' offices are located in the covered disaster areas and all relief workers affiliated with recognized government or philanthropic organizations that assisted in the relief efforts. Taxpayers who reside or have businesses located outside of the covered disaster areas must request relief by calling the IRS disaster hotline (1-866-562-5227).

  The filing extension does not apply to information returns in the Form W-2, 1098, 1099 series, to Forms 1042-S or 8027, or to employment or excise tax deposits. However, penalties for failure to timely file information returns can be waived, for reasonable cause, under existing procedures. In addition, the IRS will abate penalties and interest for failure to make timely employment and excise tax deposits due between May 17, 2009, and June 1, 2009, so long as the deposits were made by June 1, 2009.

  The IRS also reminded taxpayers that, effective for 2009: (1) taxpayers do not have to itemize to take advantage of deductions for uninsured disaster losses; (2) the 10-percent adjusted gross income limit for losses no longer applies; and (3) taxpayers must reduce the loss from each casualty event by $500. Taxpayers have the option of claiming disaster-related casualty losses on either their 2008 or 2009 federal returns. However, because of recent law changes, while claiming the losses on 2008 returns may result in faster refunds, waiting until 2009 to make the claim may be more beneficial depending on the taxpayer's circumstances. Taxpayers claiming disaster-related casualty losses on their 2008 returns should mark the top of their tax returns "Florida/Severe Storms, Flooding, Tornadoes, and Straight-line Winds" to expedite refunds.

Florida Storm, Flood, Tornado and Straight-Line Wind Victims Disaster Relief Notice, FL 2009-38, 2009FED ¶46,389

Other References:

 
Code Sec. 7508A

  CCH Reference - 2009FED ¶42,687C.22

  Tax Research Consultant

  CCH Reference - FILEIND: 15,204.25
CCH Reference - FILEBUS: 15,110