IRS, State of Georgia Offer Disaster Relief to Storm & Flood Victims

By Daniel McVicker

The IRS is offering tax relief to victims of the September storms and flooding in the state of Georgia. Affected areas include Bartow, Carroll, Catoosa, Chattooga, Cherokee, Cobb, Coweta, DeKalb, Douglas, Fulton, Gwinnett, Heard, Newton, Paulding, Rockdale, Stephens and Walker counties.

Certain deadlines are postponed until December 17 for taxpayers who live or have a business in the presidentially declared disaster area. Taxpayers outside of the affected area, but whose records are in the covered area, relief workers affiliated with a recognized government or philanthropic organization assisting in relief activities, and any individual visiting the covered area who was injured or killed as a result of the disaster are also entitled to relief.

Tax return filing, tax payments, and certain time-sensitive acts due between September 18 and December 17 qualify for postponement.

Failure to deposit penalties for employment and excise deposits due between September 18 and October 5 will also be waived as long as the deposits are made by October 5.

While relief applies to most tax returns, tax payments (including estimated payments), and Form 5500 series returns, the postponement does not include information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027.

Taxpayers in the federally declared area may claim casualty losses on their 2008 or 2009 tax returns. The designation “Georgia/Severe Storms and Flooding” should be written at the top of the form if claimed in 2008. Under current law, each casualty loss must be reduced by $500 when claimed on a tax return.

Affected taxpayers who are located outside of the covered area may request relief by contacting the IRS disaster hotline.

The Georgia Department of Revenue is also offering relief similar to the IRS. Additional returns not administered by the IRS, such as sales and use tax, also qualify for postponement to December 17.

Please contact your HLB Gross Collins, P.C. tax advisor for additional information.

Contact Us!

Contact Us