Alabama Storm Victims Eligible for Tax Relief

 

Alabama residents and business owners impacted by the recent storms and tornadoes are eligible for tax relief from the IRS. Below are several basic guidelines, but feel free to contact us with any questions.

ELIGIBILITY

Taxpayers who reside or whose principal place of business is in a county considered a federal disaster area may be eligible for tax relief.

The President has declared the following counties a federal disaster area: Autauga, Bibb, Blount, Calhoun, Chambers, Cherokee, Chilton, Choctaw, Clarke, Colbert, Coosa, Cullman, DeKalb, Elmore, Etowah, Fayette, Franklin, Greene, Hale, Jackson, Jefferson, Lamar, Lauderdale, Lawrence, Limestone, Madison, Marengo, Marion, Marshall, Monroe, Morgan, Perry, Pickens, Shelby, St. Clair, Sumter, Talladega, Tallapoosa, Tuscaloosa, Walker, Washington and Winston.

AVAILABLE RELIEF

• Most federal taxes—including individual tax returns—that were due between April 15 and June 30 have been extended through June 30th without penalty.
• Ability to amend 2010 tax returns to claim a disaster-related casualty loss for storm damage versus waiting for the 2011 tax return. Claiming the loss on an original or amended 2010 tax return will result in an earlier refund, but waiting to claim the loss on the 2011 return could result in a greater tax saving—dependent upon other income factors.
• Postponement of time to file and pay does not apply to forms in the W-2, 1098, 1099 series, or 1042-S or 8027, but penalties for failure to timely file may be waived under existing procedures for reasonable cause. However, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due between April 15 and May 2—as long as the deposits were made prior to May 2.

STEPS

• The IRS automatically identifies taxpayers located within the disaster area and applies automatic filing and payment relief. If you reside or have a business located outside of the covered area, then a relief request should be routed to the IRS disaster hot line at 1-866-562-5227.
• If you are contacting the IRS related to disaster relief, include the IRS Disaster Designation of “Alabama/Severe Storms, Tornadoes, Straight-Line Winds, and Flooding” in red ink at the top of the form to ensure expeditious treatment.
• Our team is available to answer any questions you may have.