IRS Grants Disaster Relief To Hurricane Victims

by Leroy Baker, Tax-News.com, New York

22 September 2008

Taxpayers who were adversely affected by Hurricane Ike qualify for tax relief from the Internal Revenue Service (IRS), including the postponement of tax filing and payment deadlines until January 5, 2009, the agency announced on Thursday.

On Saturday, September 13, the federal government declared several areas of Louisiana and Texas as presidential disaster areas, which therefore qualify them for individual assistance.

"We are giving taxpayers in these hard-hit areas until early next year to file their returns and make payments," IRS Commissioner Doug Shulman said. "All Americans have concerns for those affected by this devastating hurricane, and our hope is that this extra time will allow people to stay focused on the rebuilding and clean-up effort."

Specifically, the relief postpones until January 5, 2009, certain deadlines for taxpayers who reside or have a business in the disaster area. The postponement applies to return filing, tax payment and certain other time-sensitive acts due on or after September 11, 2008, and before January 5, 2009 –– including individual estimated tax returns and corporate tax returns that were due September 15, and extended individual returns due October 15.

In addition, the IRS will waive the failure to deposit penalties for employment and excise deposits due on or after September 11 and before September 26, 2008, as long as the deposits are made on or before September 26. This includes failure to deposit penalties on employment and excise tax deposits that were waived under previous relief for Hurricane Gustav.

The relief extends an initial seven-day postponement of tax filing and payment deadlines for Ike victims that was announced September 12.

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