In response to the devastation caused by Hurricane Katrina, disaster areas have

been designated in 64 parishes in Louisiana, 52 counties in Mississippi, six counties in

Alabama, and three counties in Florida. Special provisions are available for taxpayers

to help recover from the impact of a disaster

Jackson, Pamela J.

This report provides information on different types of income tax relief during times of disaster

UNT Digital Library

Congressional Research Service ˜ The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22249Updated February 17, 2006Income Tax Relief in Times of DisasterPamela J. JacksonAnalyst in Public Sector EconomicsGovernment and Finance DivisionSummaryIncome tax relief in times of disaster is varied, but typically includes several keyprovisions in the federal tax code.  These provisions include a deduction for casualtylosses, the postponement of filing deadlines, and the abatement of interest and/or fees.Generally, individuals and businesses can claim an income tax deduction forcasualty losses.  When the casualty losses occur in a presidentially declared disaster areaspecial tax provisions come into play.  For example, taxpayers can shorten the amountof time it takes to receive an income tax refund by filing an amended tax return for theprevious tax year to claim losses from the disaster.  Another special tax rule allows forthe deferral of capital gain from involuntary conversions of assets.Taxpayers in a presidentially declared disaster area who receive grants fromFEMA, state programs, charitable organizations, or employers to cover medical,transportation, or temporary housing expenses are able to exclude these grants fromtaxable income. Most recently, in response to hurricanes in the Gulf region (Katrina, Wilma, andRita), Congress enacted additional tax relief.  H.R. 3768, the Katrina Emergency TaxRelief Act of 2005, became P.L. 109-73 on September 23, 2005, and H.R. 4440, theGulf Opportunity Zone Act of 2005, became P.L. 109-135 on December 22, 2005.  Thenew laws expand existing tax relief for victims of the hurricanes. This report will be updated as warranted by legislative events.Special tax law provisions are designed to help taxpayers recover financially fromthe impact of a disaster.  Although recent legislative attention has focused on thehurricanes of the fall of 2005, other disasters have included storms and floods, land andmud slides, wildfires, and tornados.  In many cases these disasters result in a presidentialdeclaration of disaster that affords victims special benefits and incentives to assist in therecovery.  Specifically, areas declared by the President of the United States to warrantfederal assistance as the result of a disaster are designated as presidentially declareddisaster areas.  Depending on the circumstances, the IRS may grant additional time to filereturns and pay taxes. Individuals and businesses in a presidentially declared disaster areaCRS-2can obtain a faster refund by claiming losses related to the disaster on the tax return forthe previous year, usually by filing an amended return.Tax Relief for LossesCasualty losses can result from the destruction of, or damage to, property from anysudden, unexpected, and unusual event such as a flood, hurricane, tornado, fire,earthquake, or even volcanic eruption.  If property is destroyed, damaged, or stolen dueto a casualty, taxpayers may be entitled to an itemized tax deduction.  Generally, thededuction is limited to the casualty loss minus 10% of the taxpayer’s adjusted grossincome (AGI) and $100 per casualty event.  Further, the deduction is reduced by anyreimbursement for the damaged property (such as insurance).  In cases where the recoveryamount exceeds a taxpayer’s basis, a casualty gain occurs and is taxable. The Katrina Emergency Tax Relief Act (P.L. 109-73) enacted  a provision thatwaives both the limitation of the deduction to 10% of the taxpayer’s adjusted grossincome and the $100 per casualty event.  The waiver applies to losses that arise in theHurricane Katrina disaster area on or after August 25, 2005.If property is not completely destroyed or stolen, or if it is personal-use property, theloss is determined by first figuring the decrease in fair market value of the property as aresult of the casualty event.  Then the decrease in fair market value is compared with theadjusted basis in the property. The adjusted basis is usually the cost of the property plusor minus certain adjustments. From the smaller of these two amounts, the taxpayersubtracts any insurance or other reimbursement received or expected to be received. Theresult is the loss from the casualty.  If business or income-producing property iscompletely destroyed or stolen, a  decrease in fair market value is not considered.  Theloss is the adjusted basis of the property, minus any salvage value and any insurance orother reimbursement that is received or expected to be received. Casualty losses are generally deductible only in the year the casualty occurred.However, if a deductible loss occurs as a result of a disaster in a presidentially-declareddisaster area, taxpayers can choose to deduct that loss on the tax return for the yearimmediately preceding the year of the casualty. If taxpayers have already filed a taxreturn for the preceding year, the loss may be claimed in the preceding year by filing anamended return (Form 1040X for individuals or Form 1120X for corporations).  Claimingthe loss in this manner allows the issuance of a tax refund more quickly. Postponement of Deadlines and Abatement of Interest or Fees or BothThe IRS may postpone certain tax deadlines of taxpayers who are affected by apresidentially declared disaster.  The extensions apply to tax deadlines for filing most taxreturns, including individual income tax returns, corporation and S-corporation incometax returns, partnership tax returns, estate and trust income tax returns, estate and gift taxreturns, exempt organization returns, employment tax returns, and certain excise taxreturns.  CRS-31 In the case of unscheduled personal property (property that is not specifically identified in theinsurance policy but is nonetheless insured), no gain is recognized when the taxpayer receivesinsurance proceeds.  There is no requirement that the proceeds replace the destroyed property.The same treatment is not available for other insurance proceeds (i.e., proceeds for scheduledproperty).  However, other insurance proceeds for the principal residence or its contents may betreated as a common pool of funds.  If the common pool of funds is used to purchase any propertysimilar to, or related in service or use to, the converted residence (or its contents), the taxpayermay elect to recognize gain only to the extent that the amount of the pool of funds exceeds thecost of the replacement property.  If the IRS postpones the due date for filing returns and for paying taxes, andtaxpayers are affected by a presidentially declared disaster area, the IRS may abate theinterest on underpaid tax that would otherwise accrue for the period of the postponement.Taxpayers located in a presidentially declared disaster area do not have to pay interest ontaxes due for the length of any extension for filing their tax returns granted by theSecretary of the Treasury.Deferral of Gain on Involuntary ConversionsWhen personal property is involuntarily converted into cash (i.e., insuranceproceeds), it is generally taxed unless the proceeds are used to replace the destroyedproperty with similar property within a specified period.  There are, however, special rulesfor a taxpayer’s principal residence, or any of its contents, when involuntarily converted(damaged and replaced with insurance proceeds) as a result of a presidentially-declareddisaster.  The Disaster Relief and Emergency Assistance Act (DREAA; P.L. 100-707)included a provision that allows taxpayers to defer the recognition (i.e., taxation) of anygain realized on an involuntary conversion of property that occurs as a result of apresidentially-declared disaster. The gain on the involuntary conversion is deferred untila taxable sale or exchange occurs.1 The replacement period for property involuntarily converted and located within thepresidentially-declared disaster area under DREAA is four years after the close of the firsttaxable year in which any part of the gain upon conversion is realized.  A single exception to the involuntary conversion was provided for taxpayers who donot own their residences.  The rules apply to taxpayers who rent the home that serves astheir principal residence and  have damaged or destroyed property.Taxpayer Assistance at Local Disaster Recovery CentersThe Internal Revenue Service partners with tax professionals to provide assistanceto taxpayers at local disaster recovery centers that are usually established by the FederalEmergency Management Agency (FEMA).  These partners include the American Instituteof Certified Public Accountants (AICPA), the American Bar Association (ABA), theNational Association of Tax Professionals (NATP), and other organizations.  Volunteeraccountants and other tax personnel will  help address some of the tax issues and concernsthat victims will face by providing technical expertise to explain the laws regardingdisaster-related tax relief.CRS-42 U.S. Department of Treasury, Internal Revenue Service, Taxable and Non-Taxable DisasterPayments/Benefits, website [http://www.irs.gov/businesses/small/article/0,,id=147166,00.html,visited] Sept. 9, 2005.State disaster assistance coordinators also support the IRS effort at local disasterrecovery centers.  Coordinators assist victims by distributing tax kits, advising aboutreconstructing lost financial records, counseling on the determination of deductiblecasualty losses, and preparing tax returns.Disaster Relief PaymentsTaxpayers in a presidentially-declared disaster area who receive grants from FEMA,state programs, charitable organizations or employers to cover medical, transportation,or temporary housing expenses are able to exclude these grants from taxable income.However, unemployment assistance payments under the Disaster Relief and EmergencyAssistance Act are taxable unemployment compensation.  Taxpayers may exclude fromincome any amount received that is a qualified disaster relief payment.2 A qualifieddisaster relief payment is an amount paid to the taxpayer1. To reimburse or pay reasonable and necessary personal, family, living, or funeralexpenses that result from a qualified disaster;2. To reimburse or pay reasonable and necessary expenses incurred for the repair orrehabilitation of the taxpayer’s home or repair or replacement of its contents to theextent it is due to a qualified disaster;3. By a person engaged in the furnishing or sale of transportation as a common carrierbecause of the death or personal physical injuries incurred as a result of a qualifieddisaster; and4. By a federal, state, or local government or agency, or instrumentality in connectionwith a qualified disaster in order to promote the general welfare.Disaster relief payments were originally excluded from income by the Victims ofTerrorism Tax Relief Act of 2001, which added a new section (Section 139) to theInternal Revenue Code. State and Local ResponsesAside from the federal response for tax relief, some states may enact tax relief thatis similar to federal provisions.  An example would be allowing taxpayers additional timeto file returns or to make payment of taxes.  States can also cancel interest and late filingand late payment penalties that would otherwise apply to taxpayers.Special Tax Relief Enacted for Gulf Region in 2005The Katrina Emergency Tax Relief Act of 2005, P.L. 109-73, provides tax relief thatis intended to assist the victims of Hurricane Katrina.  Some of the provisions enacteddistinguish between the “Hurricane Katrina disaster area,” which is the presidentiallydeclared disaster area, and the “core disaster area,” which is the portion of the disasterCRS-53 See CRS Report RS22269,  Katrina Emergency Tax Relief Act of 2005, by Erika Lunder formore detailed information.4 See CRS Report RS22344,  The Gulf Opportunity Zone Act of 2005, by Erika Lunder for moredetailed information.area determined by President Bush to warrant individual or individual and publicassistance under the Stafford Act.3The Gulf Opportunity Zone Act of 2005, P.L. 109-135, was signed into law onDecember 22, 2005.  The act provides tax benefits to assist in the recovery fromHurricanes Katrina, Rita, and Wilma. Some of its provisions expand several sections ofthe Katrina Emergency Tax Relief Act to apply to victims of Hurricanes Rita and Wilma.4IRS Publications and Disaster Information ResourcesThe Internal Revenue Service has several publications available for taxpayers whohave experienced losses related to disasters.  These documents explain the tax rules andprovide the filing forms and information that taxpayers may require.Publication 547, Casualties, Disasters and Thefts[http://www.irs.gov/pub/irs-pdf/p547.pdf]Publication 2194, Disaster Losses Kit for Individuals [http://www.irs.gov/pub/irs-pdf/p2194.pdf]Publication 2194B, Disaster Losses Kit for Businesses[http://www.irs.gov/pub/irs-pdf/p2194b.pdf]Publication 3833, Disaster Relief: Providing Assistance through Charitable Organizations[http://www.irs.gov/pub/irs-pdf/p3833.pdf]Publication 559, Survivors, Executors, and Administrators[http://www.irs.gov/pub/irs-pdf/p559.pdf]The toll-free IRS disaster help line is (866) 562-5227.

Income Tax Relief in Times of Disaster

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22249September 9, 2005Income Tax Relief in Times of DisasterPamela J. JacksonAnalyst in Public Sector EconomicsGovernment and Finance DivisionSummaryIn response to the devastation caused by Hurricane Katrina, disaster areas havebeen designated in 64 parishes in Louisiana, 52 counties in Mississippi, six counties inAlabama, and three counties in Florida.  Special provisions are available for taxpayersto help recover from the impact of a disaster. Generally, individuals and businesses can claim an income tax deduction forcasualty losses.  When the casualty losses occur in a presidentially-declared disaster areaspecial tax provisions come into play.  For example, taxpayers can shorten the amountof time it takes to receive an income tax refund by filing an amended tax return for theprevious tax year to claim losses from the disaster.  Another special tax rule allows forthe deferral of capital gain from involuntary conversions of assets.Taxpayers in a presidentially-declared disaster area who receive grants fromFEMA, state programs, charitable organizations or employers to cover medical,transportation, or temporary housing expenses are able to exclude these grants fromtaxable income. In response to Hurricane Katrina, Congress may choose to consider enactingadditional tax relief.  This has been the case in past disasters, notably in response to theterrorist attacks of September 11, 2001.  A provision enacted by the Victims ofTerrorism Tax Relief Act of 2001 allowed an exemption from income taxes for anyindividual who died as a result of wounds or injury incurred from the terrorist attacks,along with a few other forms of tax relief.This report will be updated in the event of legislative or regulatory changes.As a result of Hurricane Katrina, which struck on Monday, August 29, 2005, manyindividuals and businesses have experienced losses.  Special tax law provisions forCRS-21 Areas declared by the President of the United States to warrant federal assistance as the resultof a disaster are designated as presidentially-declared disaster areas.2 U.S. Department of Treasury, Internal Revenue Service, website [http://www.irs.gov/newsroom/article/0,,id=147055,00.html], visited Sept. 1, 2005.taxpayers are available to help recover from the impact of a disaster, especially in theevent of presidentially-declared disasters such as Hurricane Katrina.1On August 30, 2005,  the Internal Revenue Service reported that 49 regions had beendesignated as presidentially-declared disaster areas.2  Thirty-one parishes in Louisiana, 15counties in Mississippi, and three counties in Alabama were included in the initialdeclaration.  On September 2, 2005, the IRS expanded the list of regions to include anadditional 33 parishes in Louisiana, 37 counties in Mississippi, and three counties in bothAlabama and Florida.  Currently, areas eligible for tax relief are: ! 64 Louisiana parishes: Acadia, Allen, Ascension, Assumption,Avoyelles, Beauregard, Bienville, Bossier, Caddo, Caldwell, Calcasieu,Cameron, Catahoula, Claiborne, Concordia, Desoto, East Baton Rouge,East Carroll, East Feliciana, Evangeline, Franklin, Grant, Iberia, Iberville,Jackson, Jefferson, Jefferson Davis, Lafayette, Lafourche, LaSalle,Lincoln, Livingston, Madison, Morehouse, Natchitoches, Orleans,Ouachita, Pointe Coupee, Plaquemines, Rapides, Red River, Richland,Sabine, St. Bernard, St. Charles, St. Helena, St. James, St. John, St.Landry, St. Mary, St. Martin, St. Tammany, Tangipahoa, Tensas,Terrebonne, Union, Vermilion, Vernon, Washington, Webster, WestBaton Rouge, West Carroll, West Feliciana, and Winn;! 52 Mississippi counties: Adams, Amite, Attala, Chickasaw, Choctaw,Claiborne, Clarke, Clay, Copiah, Covington, Forrest, Franklin, George,Greene, Hancock, Harrison, Hinds, Itawamba, Jackson, Jasper, Jefferson,Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake,Lee, Lincoln, Lowndes, Madison, Marion, Monroe, Neshoba, Newton,Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson,Smith, Stone, Walthall, Warren, Wayne, Webster, Wilkinson, andWinston;! Six Alabama counties: Baldwin, Clarke, Choctaw, Mobile, Sumter, andWashington; and! Three Florida counties: Broward, Miami-Dade, and Monroe.Tax Relief for LossesCasualty losses can result from the destruction of, or damage to, property from anysudden, unexpected, and unusual event such as a flood, hurricane, tornado, fire,earthquake, or even volcanic eruption.  If property is destroyed, damaged, or stolen dueto a casualty, taxpayers may be entitled to an itemized tax deduction.  The deduction islimited to the casualty loss minus 10% of the taxpayer’s adjusted gross income (AGI) and$100 per casualty event.  Further, the deduction is reduced by any reimbursement for theCRS-33 U.S. Department of Treasury, Internal Revenue Service, “Katrina Victims Will Have Until Jan.3 to File and Pay Taxes,” News Release IR-2005-96, website [http://www.irs.gov/newsroom/article/0,,id=147371,00.html], visited Sept. 8, 2005.damaged property (such as insurance).  In cases where the recovery amount exceeds ataxpayer’s basis, a casualty gain occurs and is taxable. If property is not completely destroyed or stolen, or if it is personal-use property, theloss is determined by first figuring the decrease in fair market value of the property as aresult of the casualty event.  Then the decrease in fair market value is compared with theadjusted basis in the property. The adjusted basis is usually the cost of the property plusor minus certain adjustments. From the smaller of these two amounts, the taxpayersubtracts any insurance or other reimbursement received or expected to be received. Theresult is the loss from the casualty.  If business or income-producing property iscompletely destroyed or stolen, a  decrease in fair market value is not considered.  Theloss is the adjusted basis of the property, minus any salvage value and any insurance orother reimbursement that is received or expected to be received. Casualty losses are generally deductible only in the year the casualty occurred.However, if a deductible loss occurs as a result of a disaster in a presidentially-declareddisaster area, taxpayers can choose to deduct that loss on the tax return for the yearimmediately preceding the year of the casualty. If taxpayers have already filed a taxreturn for the preceding year, the loss may be claimed in the preceding year by filing anamended return (Form 1040X for individuals or Form 1120X for corporations).  In the particular case of the victims of Hurricane Katrina, taxpayers have the optionto claim the disaster loss in one of two years. They can either claim the disaster loss in theyear the disaster occurred when filing the 2005 tax returns by April 15, 2006, or claim theloss for the 2004 tax year by filing an amended return. Claiming the loss for 2004 allowsthe issuance of a tax refund more quickly. Postponement of Deadlines and Abatement of Interest or Feesor BothThe IRS may postpone certain tax deadlines of taxpayers who are affected by apresidentially-declared disaster.  On September 8, 2005, the IRS extended tax filingdeadlines through January 3, 2006, for the residents of, and relief workers in, disasterareas in four states.3  The tax deadline includes those for filing income, estate, gift,generation-skipping transfer, certain excise, and employment tax returns, paying taxesassociated with those returns, and making contributions to a traditional IRA or Roth IRA.If the IRS postpones the due date for filing returns and for paying taxes and taxpayersare affected by a presidentially-declared disaster area, the IRS may abate the interest onunderpaid tax that would otherwise accrue for the period of the postponement.  Taxpayerslocated in a presidentially-declared disaster area do not have to pay interest on taxes duefor the length of any extension for filing their tax returns granted by the Secretary of theTreasury.CRS-44 In the case of unscheduled personal property (property that is not specifically identified in theinsurance policy but is nonetheless insured), no gain is recognized when the taxpayer receivesinsurance proceeds.  There is no requirement that the proceeds replace the destroyed property.The same treatment is not available for other insurance proceeds (i.e., proceeds for scheduledproperty).  However, other insurance proceeds for the principal residence or its contents may betreated as a common pool of funds.  If the common pool of funds is used to purchase any propertysimilar to, or related in service or use to, the converted residence (or its contents), the taxpayermay elect to recognize gain only to the extent that the amount of the pool of funds exceeds thecost of the replacement property.  Deferral of Gain on Involuntary ConversionsWhen personal property is involuntarily converted into cash, i.e., insurance proceeds,it is generally taxed unless the proceeds are used to replace the destroyed property withsimilar property within a specified period.  In contrast, special rules are provided for ataxpayer’s principal residence, or any of its contents, when involuntarily converted(damaged and replaced with insurance proceeds) as a result of a presidentially-declareddisaster.  The Disaster Relief and Emergency Assistance Act (DREAA; P.L. 100-707)included a provision that allows taxpayers to defer the recognition (i.e., taxation) of anygain realized on an involuntary conversion of property that occurs as a result of apresidentially-declared disaster. The gain on the involuntary conversion is deferred untila taxable sale or exchange occurs.4The replacement period for property involuntarily converted and located within thepresidentially-declared disaster area under DREAA is four years after the close of the firsttaxable year in which any part of the gain upon conversion is realized.  A single exception to the involuntary conversion was provided to taxpayers who donot own their residences.  The rules apply to taxpayers who rent the home that serves astheir principal residence and  have damaged or destroyed property.Taxpayer Assistance at Local Disaster Recovery CentersThe Internal Revenue Service announced on September 7, 2005, that it will partnerwith the American Institute of Certified Public Accountants (AICPA) to provideassistance to taxpayers at local disaster recovery centers established by the FederalEmergency Management Agency (FEMA).  Volunteer accountants and other taxpersonnel will  help address some of the tax issues and concerns that victims will face byproviding technical expertise to explain the laws regarding disaster-related tax relief.Disaster Relief PaymentsTaxpayers in a presidentially-declared disaster area who receive grants from FEMA,state programs, charitable organizations or employers to cover medical, transportation,or temporary housing expenses are able to exclude these grants from taxable income.However, unemployment assistance payments under the Disaster Relief and EmergencyAssistance Act are taxable unemployment compensation.  Taxpayers may exclude fromCRS-55 U.S. Department of Treasury, Internal Revenue Service, Taxable and Non-Taxable DisasterPayments/Benefits, website [http://www.irs.gov/businesses/small/article/0,,id=147166,00.html,visited] Sept. 9, 2005.6 Laura Mahoney, “FTB Extends Deadlines, Waives Penalties For Taxpayers Affected byHurricane Katrina,” Daily Tax Report, Sept. 2, 2005, p. H-1.7 Barney Tumey, “Revenue Agency Offers Relief To Victims of Hurricane Katrina,” Daily TaxReport, Sept. 2, 2005, p. H-2 and Lorraine McCarthy, “Taxpayers in Hurricane Katrina DisasterArea Receive State Tax Filing, Payment Extensions,”  Daily Tax Report, Sept. 9, 2005, p. H-2.8 Susanne Pagano, “DOR Officials Highlight for Katrina Victims Sales Tax Break on Long-TermRoom Rental,” Daily Tax Report, Sept. 1, 2005, p. H-2.income any amount received that is a qualified disaster relief payment.5 A qualifieddisaster relief payment is an amount paid to the taxpayer:1. To reimburse or pay reasonable and necessary personal, family, living, or funeralexpenses that result from a qualified disaster;2. To reimburse or pay reasonable and necessary expenses incurred for the repair orrehabilitation of the taxpayer’s home or repair or replacement of its contents to theextent it is due to a qualified disaster;3. By a person engaged in the furnishing or sale of transportation as a common carrierbecause of the death or personal physical injuries incurred as a result of a qualifieddisaster; and4. By a federal, state, or local government or agency, or instrumentality in connectionwith a qualified disaster in order to promote the general welfare.Disaster relief payments were originally excluded from income by the Victims ofTerrorism Tax Relief Act of 2001, which added a new section (Section 139) to theInternal Revenue Code. State and Local ResponsesAside from the federal response for tax relief, some states may enact tax relief thatis similar to federal provisions.  An example would be allowing taxpayers additional timeto file returns or to make payment of taxes.  Already, the California Franchise Tax Boardwill cancel interest, late filing, and late payment penalties that would otherwise apply totaxpayers in the federally declared disaster areas affected by Hurricane Katrina.6  Further,the Georgia, Pennsylvania, and New Jersey Departments of Revenue announced thatbusinesses or individuals in the presidential disaster area struck by Hurricane Katrina areeligible for extensions until October 31, 2005 to file state tax returns and submit paymentswith original due dates falling between August 29 and October 31, 2005.7In Louisiana, Hurricane Katrina victims and others who use hotel rooms for extendedperiods longer than two consecutive months are exempt from state sales tax on their roomoccupancy charges, according to the Louisiana Department of Revenue.8In Texas, the state comptroller communicated that businesses affected by HurricaneKatrina’s devastation may postpone paying taxes owed to Texas.  In particular, businesseswill, upon request, be granted an extension of 90 days to file tax returns due in SeptemberCRS-69 Kurt Fernandez, “Comptroller Says Businesses Impacted By Katrina May Postpone TaxPayments,” Daily Tax Report, Sept. 1, 2005, p. H-2.and October 2005, with additional extensions granted if necessary.  The comptrollerreported that about 7,138 Texas businesses have operations in Louisiana, Mississippi, orAlabama.9Victims of Terrorism Tax Relief Act of 2001In response to Hurricane Katrina, Congress may choose to consider enactingadditional tax relief.  This has been the case in past disasters, notably in response to theterrorist attacks of September 11, 2001.  The Victims of Terrorism Tax Relief Act of 2001(P.L. 107-134) included an exemption from income taxes for individuals who died as aresult of wounds or injuries incurred from the terrorist attacks against the United States,or who died as a result of illness incurred from a terrorist attack involving anthraxoccurring on or after September 11, 2001, and before January 1, 2002.  The law alsoexcluded from gross income certain death benefits paid by an employer to a victim of theattacks, and set special (lowered) estate tax rates applicable to combat zone related deathsof members of the armed forces and victims of the attacks.IRS PublicationsThe Internal Revenue Service has several publications available for taxpayers whohave experienced losses related to disasters.  These documents explain the tax rules andprovide the filing forms and information that taxpayers may require.Publication 547, Casualties, Disasters and Thefts[http://www.irs.gov/pub/irs-pdf/p547.pdf]Publication 2194, Disaster Losses Kit for Individuals [http://www.irs.gov/pub/irs-pdf/p2194.pdf]Publication 2194B, Disaster Losses Kit for Businesses[http://www.irs.gov/pub/irs-pdf/p2194b.pdf]Publication 3833, Disaster Relief: Providing Assistance through Charitable Organizations[http://www.irs.gov/pub/irs-pdf/p3833.pdf]Publication 559, Survivors, Executors, and Administrators[http://www.irs.gov/pub/irs-pdf/p559.pdf]

https://digital.library.unt.edu/ark:/67531/metadc814338/m2/1/high_res_d/RS22249_2006Feb17.pdf

Income Tax Relief in Times of Disaster

Abstract

Similar works

Full text

Available Versions

UNT Digital Library

UNT Digital Library