It was described as “a lawn-mower blade spanning two miles” – and it left a trail of devastation in its wake. The tornado that ripped through Moore and Oklahoma City yesterday may have only stayed on the ground forty minutes but it will be remembered for years to come.
As those in Oklahoma began the long process of cleaning up after the storm, the Internal Revenue Service announced tax relief to individuals and businesses to those impacted by the tragedy. Affected taxpayers in Cleveland, Lincoln, McClain, Oklahoma and Pottawatomie counties will receive special tax relief. The IRS is continuing to monitor the area and made extend relief to other locations as the Federal Emergency Management Agency (FEMA) continues its work.
Specifically, the relief extends certain tax filing and payment deadlines occurring after May 18, 2013. The IRS is waiving failure-to-deposit penalties for federal payroll and excise tax deposits normally due on or after May 18 through June 3 so long as the deposits are made by June 3, 2013. For those tax filing and payment deadlines for all other affected taxpayers occurring after May 18, those deadlines have been extended to September 30, 2013. This includes estimated tax payment deadlines of June 17 and September 16, as well as the July 31 payroll and excise tax deadlines. Those taxpayers who are entitled to relief will automatically have any applicable interest, late-payment or late-filing penalty abated. This means that affected taxpayers will need not contact the IRS to get this relief.
If you live outside of the FEMA designated area but have books, records, or tax pros inside the area, the IRS will work with you to get you relief. Relief is also available for those who live outside of the FEMA designated areas but who are assisting in disaster relief. If either of those situations apply to you, you will need to contact the IRS; the relief is not automatic for those living outside of the FEMA designated areas. If this applies to you, contact the IRS at 866-562-5227.
Taxpayers who suffered disaster-related losses that are not covered by insurance can deduct those casualty losses on a federal income tax return. A casualty loss is the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a tornado.
I’ll have more on available tax relief and how you can help victims of the storm as information is made available. In the interim, please know that my thoughts and prayers are with all of you affected by the storms.
