CCH can assist you with stories, including interviews with CCH subject experts.
Also, the 2013
CCH Whole Ball of Tax is available in print. Please
Visit the CCH Whole Ball of Tax site often as new releases and other updates will be posted
throughout the tax season.
CCH provides special CCH Tax Briefings on key topics at CCHGroup.com/Legislation.
2013 CCH Whole Ball of Tax
Tax Relief for Victims of Hurricane Sandy, Other Natural Disasters
CCH Examines Benefits for Individuals, Businesses
(RIVERWOODS, ILL., January 2013) – As communities devastated by Hurricane Sandy last October and other natural disasters in 2012 continue to recover, special tax breaks are available to help people and businesses through extremely tough times. CCH, a Wolters Kluwer business and a leading global provider of tax, accounting and audit information, software and services (CCHGroup.com), examines disaster-related tax relief measures that may benefit many who have been impacted by weather-related catastrophes.
“For Americans who have been devastated by a disaster, the thought of making a financial recovery in the immediate aftermath of widespread destruction can be too much to handle when your family, friends and loved ones are top priority,” said CCH Senior Federal Tax Analyst Mildred Carter, JD. “With Hurricane Sandy and many natural disasters, the IRS often provides tax-relief measures and extra time for filing extensions to help individuals and businesses get back on their feet financially.”
Hurricane Sandy Tax Relief
The IRS has already implemented tax filing and payment relief measures for residents and businesses affected by Hurricane Sandy in Connecticut, New Jersey, New York and Rhode Island – with additional relief potentially available for other affected states. Specific state information is available by visiting the IRS web page: Help for Victims of Hurricane Sandy.
Among the tax relief measures implemented by the IRS for qualifying taxpayers are:
- Extending deadlines – Affected taxpayers who file quarterly have until February 1, 2013 to file most returns and pay any taxes due. Relief applies to the fourth quarter individual estimated tax payment that had been due on January 15, 2013. The IRS also extended the October 31, 2012 and January 31, 2013 deadlines for filing payroll and excise taxes to February 1, 2013;
- Exempt organizations – Extended filing relief is available for qualifying tax-exempt organizations required to file Form 990 series returns with an original or extended deadline that fell within the time period from late October 2012 through February 1, 2013;
- Loans, hardship distributions – After Hurricane Sandy, the IRS announced it would allow expedited and expanded loan and hardship distributions from qualified employer-sponsored retirement plans. To qualify for relief, a hardship distribution must be made by February 1, 2013; and
- Abatement, waiver – For qualifying individuals and businesses, the IRS will abate any interest and any late-payment or late-filing penalties that would otherwise apply. It will also waive failure-to-deposit penalties for payroll and excise taxes due on or after the date an affected community was officially declared a disaster area and before November 26, 2012 – if the deposits were made by November 26, 2012.
The IRS has said filing and payment relief will be updated based on the Federal Emergency Management Agency’s (FEMA) declarations of individual assistance. The IRS will expedite processing of returns claiming a Hurricane Sandy disaster loss. Taxpayers should write the disaster designation "Connecticut/Hurricane Sandy," "New Jersey/Hurricane Sandy," "New York/Hurricane Sandy" or “Rhode Island/Hurricane Sandy,” at the top of their return.
“Before assuming you may be entitled to a storm-related tax break, it’s important to check with a tax professional, your state’s department of revenue or the IRS to see if they are available and if you are eligible,” said Carter.
In addition to tax relief measures, lawmakers have been working on an emergency funding package to help residents of areas devastated by Hurricane Sandy. On January 15, the House of Representatives approved the Disaster Relief Appropriations Act, 2013 (H.R. 152) by a vote of 241 to 180. The legislation provides more than $50 billion dollars in emergency aid for hurricane victims.
Disaster Tax Relief – Other Storms, Catastrophes
In addition to providing tax relief for those impacted by Hurricane Sandy, federal tax assistance is also available for victims of other disasters that struck in 2012:
- Mississippi and Louisiana victims of Hurricane Isaac beginning on August 26, 2012;
- Oklahoma victims of the Freedom Wildfire beginning on August 3, 2012;
- West Virginia victims of June 2012 storms and straight-line winds;
- Florida victims of Tropical Storm Debby in June 2012;
- West Virginia victims of March 2012 storms;
- Tennessee victims of February 2012 storms;
- West Virginia victims of February 2012 storms;
- Indiana victims of February 2012 storms;
- Kentucky victims of February 2012 storms; and
- Alabama victims of January 2012 storms.
“Tax breaks are also available in certain states for those buying supplies related to preparations for incoming hurricanes and strong storms,” Carter added. “In 2012, Alabama, Louisiana and Virginia held sales tax holidays where sales taxes were waived on purchases of approved hurricane preparedness items.”
For More Information
More details on specific tax relief for 2012 disasters and for those in previous years can be found by visiting the IRS disaster relief page and at DisasterAssistance.gov.
To see an interview with Mildred Carter about disaster tax relief, please click on this video web link.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (CCHGroup.com) is a leading global provider of tax, accounting and audit information, software and services. Celebrating its 100th anniversary in 2013, CCH has served tax, accounting and business professionals since 1913. Among its market-leading solutions are the ProSystem fx® Suite, CCH Integrator™, CCH® IntelliConnect®, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill. Follow us on Twitter @CCHMediaHelp. Wolters Kluwer (www.wolterskluwer.com) is a market-leading global information services company. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.