When Hurricane Sandy hit in late October, over 60 million Americans were affected. That means that 1 in 5 Americans are facing some kind of recovery from the storm. If you are one of these many Americans that are facing material loss or damage, or were affected by this super-storm, you could be eligible for some tax relief. Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency, the IRS announced November 2, 2012 that affected taxpayers in Connecticut, New Jersey and New York will receive tax relief. Other locations may be added in coming days based on additional damage assessments by FEMA.
Areas Eligible for Tax Relief
The areas where relief applies currently include:
· In Connecticut: Fairfield, Middlesex, New Haven, and New London Counties and the Mashantucket Pequot Tribal Nation and Mohegan Tribal Nation located within New London County
· In New Jersey: Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, Somerset and Union
· In New York : Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk and Westchester
Tax Relief for Victims Of Hurricane Sandy
The IRS states, “the tax relief postpones various tax filing and payment deadlines that occurred starting in late October. As a result, affected individuals and businesses will have until Feb. 1, 2013 to file these returns and pay any taxes due”.
· This includes the fourth quarter individual estimated tax payment, normally due Jan. 15, 2013. It also includes payroll and excise tax returns and accompanying payments for the third and fourth quarters, normally due on Oct. 31, 2012 and Jan. 31, 2013 respectively.
· It also applies to tax-exempt organizations required to file Form 990 series returns with an original or extended deadline falling during this period.
· In addition, the IRS is waiving failure-to-deposit penalties for federal payroll and excise tax deposits normally due on or after the disaster area start date and before Nov. 26, if the deposits are made by Nov. 26, 2012.
The IRS automatically provides this relief to any taxpayer located in the disaster area. Taxpayers need not contact the IRS to get this relief.
The IRS also stated that they are working with any taxpayer who resides outside the disaster area but whose books, records or tax professional are located in the areas affected by Hurricane Sandy. All workers assisting the relief activities in the covered disaster areas who are affiliated with a recognized government or philanthropic organization are eligible for relief. Taxpayers who live outside of the impacted area and think they may qualify for this relief need to contact the IRS at 866-562-5227.
Helping Those in Need
If you find yourself in the position to help others affected by Hurricane Sandy, your financial contributions to organization like the American Red Cross or any other qualified charity are tax-deductible. In order for charitable deductions to be considered tax-deductible, they must be made to qualified, tax-exempt organizations. For more information about helping the victims of Sandy and donating to the Red Cross, visit the Red Cross website today!