The Internal Revenue Service has waived some limitations of the low-income housing tax credit in Indiana and Iowa so that owners of facilities in these states can provide housing to victims of recent storms and flooding.
The action is expected to expand the availability of housing for disaster victims and their families. The IRS said it would continue to monitor closely the housing situation in other states affected by the recent flooding, hinting that it may follow the same course in those states. The IRS recently extended tax-filing and payment deadlines for victims of the recent flooding (see IRS Gives Storm Victims More Time to Pay Taxes).
"Our thoughts are with the thousands of families left homeless by these terrible tragedies," said IRS Commissioner Doug Shulman in a statement. "We are pleased to help these states to quickly house the needy whose homes were destroyed."
The IRS also made a move to help victims of last month's earthquake in China. Notice 2008-57 designates the earthquake as a qualified disaster for purposes of Section 139 of the Tax Code. The move enables employer-sponsored private foundations to assist certain victims in areas affected by the earthquake and allows recipients of this assistance to exclude the relief payments from gross income.
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