Tax relief in declared disaster areas
taxes

Tax relief in declared disaster areas

Chances are you might have one or more clients who were affected by natural disasters; check out this article on filing compliance to see if your clients are affected; it is updated periodically whenever there is new information to add.

In the meantime, tax relief is available for people living in areas that are declared disasters by the Federal Emergency Management Agency. To find out whether an area qualifies for federal disaster relief, taxpayers should check DisasterAssistance.gov.

Find disaster assistance information from the IRS

Up-to-date information is available from these IRS resources:

Affected taxpayers have more time to file and pay

If taxpayers live at an address in an area that qualifies for IRS disaster tax relief, they automatically get extra time from the IRS to file returns and pay taxes.

Casualty loss tax deduction

If people have damaged or lost property due to a federally declared disaster, they may qualify to claim a casualty loss deduction and get a larger refund. They can claim this on their current or prior-year tax return.

Rebuild lost records with a tax return transcript

If people have lost their tax records, they can request a tax return transcript and a copy of their tax return from the IRS.

  • Taxpayers can get tax return transcripts online or request mail delivery with Get Transcript. Taxpayers can also file Form 4506-T, Request for Transcript of Tax Return.
  • To get a copy of a tax return, taxpayers can file Form 4506, Request for Copy of Tax Return. The IRS waives the fees and expedites these requests for people who need to apply for disaster-related benefits or file amended returns to claim disaster-related losses.

To speed up the process, taxpayers who file Forms 4506-T or 4506 should:

  • Write on the form that the request is disaster related.
  • Write the type of disaster and the state where it occurred.

People who relocate need to submit a change of address

After a disaster, people might need to temporarily relocate. People who move should notify the IRS of their new address by submitting Form 8822, Change of Address.

Small Business Administration loans and grants

The Small Business Administration offers disaster assistance to business owners, homeowners and renters in a federally declared disaster area. To qualify for an SBA loan or grant, taxpayers must have filed all required tax returns.

More information: FAQs for disaster victims

Editor's note: This article was originally published on the Intuit Tax Pro Center.


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