IRS Gives Victims of Hurricane Katrina More Relief

The IRS has announced further tax relief for victims ofidentify themselves. To do so, taxpayers must contact
Hurricane Katrina due to slow clean up efforts andthe IRS by calling 1-866-562-5227, a disaster relief
obviously devastated areas.hotline or writing Hurricane Katrina on their tax returns
The IRS is giving relief to both businesses and individualwhen filing.
taxpayers in certain areas that have been absolutelyImportantly, none of these extensions applies to any
wiped out. Instead of being required to file in March orongoing business tax requirements for entities which
April, depending on whether the payer is a business orare functioning. Ongoing business tax requirements
individual, all taxpayers in certain regions will have tillinclude items such as filing employment tax deposits
August 28, 2006. Further, the IRS is waiving all late filingfor employee wages if your business is still functioning.
penalties on people in the impacted areas even if theyYou can file your annual tax return late, but not
don't file by the August 28, 2006 deadline.monthly or quarterly items if you are up and running.
This automatic extension represents a very positiveWithout doubt, the Internal Revenue Service is the
move by the IRS, but readers should keep in mind itmost maligned agency in the government. It is ironic
doesn't apply to all areas. Only the most severelythat the agency has made positive step after positive
damaged areas get to take advantage of thestep to grant relief of all sorts to victims in the disaster
extension. Those areas are in Louisiana: Cameron,zone. The IRS has even published articles and press
Jefferson, Orleans, Plaquemines, St. Bernard, St.releases telling victims how to file amended taxes to
Charles, and St. Tammany. The automatic extension isclaim the losses on previous tax returns and get
also applied to individuals living in the Mississippi countiesrefunds.
of Hancock, Harrison and Jackson.Compared to the rest of the federal government, the
For impacted taxpayers who live outside of theseIRS is clearly the only agency that has stepped up and
areas, the IRS is willing to grant more time to file taxes.delivered for the victims of Hurricane Katrina. For once,
Said taxpayers, however, must contact the IRS tothe IRS deserves a standing ovation.