New York State released Publication 59, which includes details on how to prepare amended or original returns, the documents that must accompany the returns, and where to file returns to claim the personal income tax relief.

A new Form IT-59, Tax Forgiveness for Victims of the September 11, 2001, Terrorist Attacks, is included to compute the amount of tax forgiven. To claim the tax relief, filers must include this form with the original or amended return.

Meanwhile, the IRS offered guidance on the circumstances under which victims may qualify for the reduced maximum exclusion of gain on the sale or exchange of a principal residence.

Recently the IRS was asked whether individuals affected by the attacks are entitled to exclude the gain from the sale of a principal residence in a reduced maximum amount, due to unforeseen circumstances. The IRS found that victims are entitled claim a reduced maximum exclusion of gain on a sale or exchange of the individual's principal residence if the person sells or exchanges the residence as a result of being affected by the attacks.


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