Tax Relief Granted for Hurricane Rita

WASHINGTON -- The Internal Revenue Service Monday announced relief for taxpayers affected by Hurricane Rita. President Bush issued major disaster declarations covering Texas and Louisiana effective Sept. 23, 2005, according to a press release.

Taxpayers affected by the hurricane may be eligible for relief. Deadlines for affected taxpayers to file returns, pay taxes and perform other time-sensitive acts have been postponed to Feb. 28, 2006, the same extended date that Congress granted to taxpayers affected by Hurricane Katrina.

In the hardest-hit areas -- those counties designated by the Federal Emergency Management Agency (FEMA) as “individual assistance areas” -- the tax relief will be automatic, and taxpayers won’t need to do anything to get the extensions and other relief available.

In Texas, nine counties are in this category for individual assistance: Chambers, Galveston, Hardin, Jasper, Jefferson, Liberty, Newton, Orange and Tyler. In Louisiana, five parishes are in this category: Beauregard, Cameron, Calcasieu, Jefferson Davis and Vermilion.

In areas of Texas and Louisiana where FEMA has determined damage is more isolated -- designated as “public assistance areas” -- or for other taxpayers outside the hardest-hit areas whose books, records or tax professionals are located in the affected areas, people will need to identify themselves to the IRS as hurricane victims.

Taxpayers who need to identify themselves as hurricane victims should write “Hurricane Rita” in red ink at the top of their tax forms or any other documents filed with the IRS. Taxpayers who need to alert the IRS or have other Rita-related questions can also call the special IRS disaster hotline at 1 (866) 562-5227.

The IRS has postponed deadlines -- and will abate interest and any late filing, late payment or failure to deposit penalties that would otherwise apply -- for any tax return, tax payment or tax deposit with an original or extended due date falling on or after Sept. 23, 2005. This relief includes the Oct. 17 deadline for individuals who received a second extension for filing their individual income tax returns; the Oct. 31 deadline for filing quarterly federal employment and excise tax returns; and employment and excise deposits due on or before Feb. 28, 2006. In addition, any affected taxpayer who receives a penalty notice from the IRS should call the number on the notice to receive penalty abatement.

To read the full press release, click here.

-- NYSSCPA.org News Staff

Posted on 9/26/05