Albuquerque, NM (PRWEB) October 2, 2005
The IRS is offering numerous opportunities to assist victims of Hurricanes Katrina and Rita. The details in this write-up summarizes some of the assistance the IRS delivers Katrina and/or Rita victims and these who want to help them.

The IRS has a unique disaster hotline at 1-866-562-5227 for all victims of the hurricanes. This quantity will have all the up-to-date data regarding what the IRS can do to assist you with your individual questions. Given that info is getting updated regularly, it is a very good concept to find out what the most recent information is.

Taxpayers dont need to reside in the impacted locations, but need to establish the hurricane affected them in order to qualify for the tax relief. The specific disaster hotline can support you figure out if you qualify for this tax relief. If you are a relief worker assisting in the recovery or have your books, records or tax professional positioned in the impacted areas, you also could qualify.

In basic, you can postpone filing returns and paying taxes till January three, 2006 for due dates falling on or following August 29, 2005. For Florida the due date is on or right after August 24, 2005 because Katrina hit there 1st. This would incorporate corporate and person returns with proper extensions, federal employment and excise returns and their respective deposits due on or just before January three, 2006.

If you are impacted by an person assistance region as designated by FEMA, the tax relief is automatic. If you are in a public assistance area as designated by FEMA or other impacted region, you will need to determine oneself as a hurricane victim with the IRS.

You can have your interest and penalties abated for payments due for this time period. Of course, any tax owed is nonetheless due but payment can be delayed without interest and penalties accumulating for the duration of this time period.

Cash from retirement plans such as 401(k), 403(b) and certain 457 deferred-compensation plans might also be utilized in the kind of a loan or hardship distribution. You ought to talk about the choices accessible with your program administrator and tax preparer to make sure that you don’t get penalized. Individual Retirement Account (IRA) participants can’t get a loan from their IRA but they may possibly be capable to take hardship distributions. Hardship withdrawals should be produced by March 31, 2006. Be conscious you will owe taxes on the amount withdrawn. Congress is thinking about a modification to the ten % early-withdrawal penalty so make positive the transaction is handled correctly to stay away from any penalty. This retirement plan relief can be utilized to repair or replace a home or for other necessities. You can use it to help specific relatives and dependents including parents, grandparents and kids. You can discover out much more with regards to tax favored therapy of early withdrawals at the irs.gov internet site at IR-2005-122 dated October 17, 2005.

For people and corporations who want to aid victims, it is fairly simple for employers to adopt a Leave Donation Program where staff can donate their unused trip, sick or individual leave. The quantity is calculated primarily based on the hours donated and the hourly rate of the employee. This is converted to a money payment to the respective charities as set up by the corporation and may even include religious and educational organizations as well as neighborhood, state and federal governments. The donated time is not taxable to the employee and is tax deductible to the corporation. The payments need to have to be produced by December 31, 2006. If you do not have accrued time this year, you can wait till you have accrued time and donate it as lengthy as it is prior to the end of 2006. Employers can discover the standard specifications in Notice 2005-68 at the irs.gov internet site.

The IRS is also permitting much more liberal rules for casualty or theft losses. Specific loss limitations have been removed. You can find out more data about it at the irs.gov site at IR-2005-119 dated October 11, 2005 .

This report was intended to offer basic info about IRS support for hurricane victims. It does not include all the information obtainable. If you have further queries, I can be reached at http://www.dgoodmancpa.com.

About the Author

Dianne Goodman, CPA Specializes in servicing Modest Companies and Folks. Check out http://www.dgoodmancpa.com for relevant and current information on a assortment of economic and tax troubles focusing on little organizations and folks or get in touch with at 1-888-851-1975.

Speak to Data:

Dianne Goodman, CPA

Comprehensive Little Enterprise Solutions, Pc

505 323-2307

1 888-851-1975 toll cost-free

http://www.dgoodmancpa.com

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