Victims of recent storms in Alabama and Missouri and wildfires in Oklahoma may qualify for tax relief from the IRS.

Following severe storms, flooding, tornadoes, and straight-line winds on May 6, President Obama declared Autauga, Bullock, Elmore and Montgomery counties in Alabama a federal disaster area qualifying for individual assistance.

Similarly, following severe storms, tornadoes, and flooding on May 8, the president declared Adair, Barry, Barton, Bollinger, Cape Girardeau, Christian, Dade, Dallas, Dent, Douglas, Greene, Howell, Iron, Jasper, Jefferson, Laclede, Lawrence, Madison, Newton, Ozark, Polk, Reynolds, Ripley, St. Francois, Shannon, Texas, Washington and Webster counties in Missouri a federal disaster area qualifying for individual assistance.

Following wildfires on April 9, the president also declared Carter, Cleveland, Grady, Lincoln, McClain, Murray, Oklahoma, Payne and Stephens counties in Oklahoma a federal disaster area qualifying for individual assistance.

As a result, in Alabama, the IRS is postponing until July 6, 2009, certain deadlines for taxpayers who reside or have a business in the disaster area. The postponement applies to return filing, tax payment and certain other time-sensitive acts otherwise due between May 6, 2009, and July 6, 2009. In addition, the IRS will waive the failure-to-deposit penalties for employment and excise deposits due on or after May 6, 2009, and on or before May 21, 2009, as long as the deposits were made by May 21, 2009.

In Missouri, the postponement is until July 7 for time-sensitive acts otherwise due between May 8 and July 7. Failure-to-deposit penalties will be waived for employment and excise deposits due on or after May 8, and on or before May 25, as long as the deposits were made by May 25.

In Oklahoma, the postponement is until June 8 for time-sensitive acts otherwise duebetween April 9 and June 8. Failure-to-deposit penalties will be waivedfor employment and excise deposits due on or after April 9, and on orbefore April 24, as long as the deposits were made by April 24.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

IRS computer systems automatically identify taxpayers located in the covered disaster area and apply automatic filing and payment relief. Affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at (866) 562-5227 to request tax relief.


Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access