Disaster victims in Oklahoma

Disaster victims in Oklahoma qualify for tax relief

IRS has announced that victims of the Freedom Wildfire that began on Aug. 3, 2012 in a county in Oklahoma that is designated as a federal disaster area qualifying for individual assistance have more time to make tax payments and file returns. Certain other time-sensitive acts also are postponed. This article summarizes the relief that's available and includes up-to-date disaster area designations and extended filing and deposit dates for all areas affected by storms, floods and other disasters in 2012.

Who gets relief. Only taxpayers considered to be affected taxpayers are eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts. Affected taxpayers are those listed in Reg. § 301.7508A-1(d)(1) and thus include:

... any individual whose principal residence, and any business entity whose principal place of business, is located in the counties designated as disaster areas;

... any individual who is a relief worker assisting in a covered disaster area, regardless of whether he is affiliated with recognized government or philanthropic organizations;

... any individual whose principal residence, and any business entity whose principal place of business, is not located in a covered disaster area, but whose records necessary to meet a filing or payment deadline are maintained in a covered disaster area;

... any estate or trust that has tax records necessary to meet a filing or payment deadline in a covered disaster area; and

... any spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife.

What may be postponed. Under Code Sec. 7508A, IRS gives affected taxpayers until the extended date (specified by county, below) to file most tax returns (including individual, estate, trust, partnership, C corporation, and S corporation income tax returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date falling on or after the onset date of the disaster (specified by county, below), and on or before the extended date.

IRS also gives affected taxpayers until the extended date to perform other time-sensitive actions described in Reg. § 301.7508A-1(c)(1) and Rev Proc 2007-56, 2007-34 IRB 388, that are due to be performed on or afterthe onset date of the disaster, and on or before the extended date. This relief also includes the filing of Form 5500 series returns, in the way described in Rev Proc 2007-56, Sec. 8. Additionally, the relief described in Rev Proc 2007-56, Sec. 17, relating to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 or 5498 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or after the onset date of the disaster, and on or before the deposit delayed date (specified by county, below), provided the taxpayer made these deposits by the deposit delayed date.

Affected areas and dates for storms, floods and other disasters in 2012 that are federal disaster areas qualifying for individual assistance, as published on IRS's website, are carried below.

 Effective for disasters declared in tax years beginning after Dec. 31, 2007, the term “federally declared disaster” replaced the previously used “presidential disaster area” term (seeCode Sec. 1033(h)(3), as amended by Sec. 706(d)(1), Div. C, P.L. 110-343). The new term is substantially the same as the definition of “presidentially declared disaster” under former law. (T.D. 9443, 01/4/2009, see Weekly Alert ¶  1  01/22/2009)

Alabama: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds and flooding on Jan. 22, 2012: Chilton, Jefferson and Perry counties.

For these Alabama counties, the onset date of the disaster was Jan. 22, 2012, the extended date was Mar. 22, 2012. The deposit delayed date was Feb. 6, 2012.

Florida: The following are federal disaster areas qualifying for individual assistance on account of tropical storm Debby that began on June 23, 2012: Baker, Bradford, Citrus, Clay, Columbia, Duval, Franklin, Gilchrist, Hernando, Highlands, Hillsborough, Lafayette, Manatee, Nassau, Pasco, Pinellas, Polk, Sarasota, Suwannee, Taylor, Union, and Wakulla counties.

For these Florida counties, the onset date of the disaster was June 23, 2012, the extended date is Aug. 22, 2012. The deposit delayed date was July 9, 2012.

Indiana: The following are federal disaster areas qualifying for individual assistance on account of severe storms, straight-line winds and tornadoes that began on Feb. 29, 2012: Clark, Jefferson, Ripley, Scott, Warrick and Washington counties.

For these Indiana counties, the onset date of the disaster was Feb. 29, 2012, the extended date is May 31, 2012. The deposit delayed date was Mar. 15, 2012.

Kentucky: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds and flooding that started on Feb. 29, 2012: Bath, Campbell, Carroll, Grant, Grayson, Johnson, Kenton, Larue, Laurel, Lawrence, Magoffin, Martin, Menifee, Montgomery, Morgan, Ohio, Pendleton, Rowan, Russell, Trimble and Wolfe counties.

For these Kentucky counties, the onset date of the disaster was Feb. 29, 2012, the extended date is May 31, 2012. The deposit delayed date was Mar. 15, 2012.

Oklahoma: The following is a federal disaster area qualifying for individual assistance on account of Freedom Wildfire that began on Aug. 3, 2012: Creek county.

For this Oklahoma county, the onset date of the disaster was Aug. 3, 2012, the extended date is Oct. 2, 2012 (including the quarterly estimated tax payment due on Sept. 17, 2012). The deposit delayed date was Aug. 20, 2012.

Tennessee: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds, and flooding that began on Feb. 29, 2012: Bradley, Claiborne, Cumberland, DeKalb, Hamilton, Jackson, McMinn, Monroe, Overton and Polk counties.

For these Tennessee counties, the onset date of the disaster was Feb. 29, 2012, the extended date is May 31, 2012 (the postponement thus applies to the normal April 17 deadline for filing 2011 individual income tax returns, making income tax payments, and making 2011 contributions to an individual retirement account (IRA)). The deposit delayed date was Mar. 15, 2012.

West Virginia: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, flooding, mudslides and landslides that began on Feb. 29, 2012: Harrison, Lincoln, Marion, Preston, Taylor and Wayne counties.

For these West Virginia counties, the onset date of the disaster was Feb. 29, 2012, and the extended date is May 31, 2012 (the postponement thus applies to the normal April 17 deadline for filing 2011 individual income tax returns, making income tax payments, and making 2011 contributions to an IRA). The deposit delayed date was Mar. 15, 2012.

West Virginia: The following is a federal disaster area qualifying for individual assistance on account of severe storms, flooding, mudslides and landslides that began on Mar. 15, 2012: Lincoln, Logan and Mingo counties.

For these West Virginia counties, the onset date of the disaster was Mar. 15, 2012, and the extended date is May 31, 2012 (which includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an IRA). The deposit delayed date was Mar. 30, 2012.

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