Please enter your email address to receive a password reminder.
Log into Tax-News+
After previously providing tax relief by extending return filing and tax payment deadlines after Hurricane Sandy, the United States Internal Revenue Service (IRS) has also announced that it will waive low-income housing tax credit rules that prohibit owners of low-income housing from providing housing to victims who do not qualify as low-income.
The action should expand the availability of housing for disaster victims and their families after the widespread devastation to housing caused by Hurricane Sandy. The Treasury Department and the IRS will temporarily suspend income limitation requirements and non-transient requirements for qualified low-income housing projects that provide housing to victims of Hurricane Sandy.
As President Obama has declared that major disasters exist in Connecticut, New York and New Jersey, federal funding is available to affected individuals in designated counties through the Federal Emergency Management Agency. Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programmes to help individuals and business owners recover from the effects of the disaster.
In addition, the IRS, in response to shortages of clear diesel fuel caused by Hurricane Sandy, will not impose a tax penalty when dyed diesel fuel is sold for use or used on the highway.
This penalty relief is available to any person that sells or uses dyed fuel for highway use. It applies from October 30, 2012 in New Jersey, New York, and Pennsylvania, and will remain in effect until November 20, 2012.
In the case of the operator of the vehicle in which the dyed fuel is used, the relief is available only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon that is normally applied to diesel fuel for on-road use. The IRS will also not impose penalties for failure to make semi-monthly deposits of this tax.
Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes, for home heating use and to local governments for buses.
IMPORTANT NOTICE: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
All rights reserved. © 2016 Wolters Kluwer