Various tax agencies are giving relief to individuals, businesses, and organizations impacted by the brush fires in Southern California.
The IRS announced today that they will extend various deadlines for taxpayers impacted by the disaster:
Taxpayers in the Presidential Disaster Area –– consisting of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura counties –– will have until Jan. 31, 2008, to file returns, pay taxes and perform other time-sensitive acts.
The extended deadline applies to items due on or after Oct. 21, 2007, when the fires began, and on or before Jan. 31, 2008. This includes the federal withholding tax return, Form 941, normally due Oct. 31, and the estimated tax payment for the fourth quarter, normally due Jan. 15.
In addition, the IRS is waiving the failure to deposit penalty for employment and excise deposits due on or after Oct. 21, 2007, and on or before Nov. 5, 2007, as long as the deposits are made by Nov. 5, 2007.
The Franchise Tax Board is letting impacted taxpayers obtain free copies of their tax returns.
“If taxpayers impacted by the fires need copies of state tax returns to replace lost or damaged ones, they should complete Form FTB 3516, Request for Copy of Tax Return. Print “Southern California Wildfires 2007” in red at the top of the request. Disaster victims receive free copies of tax returns.”
The FTB may issue other relief at a later date.
Any client impacted by the disaster should contact us when they have a chance. You may be eligible for a Casualty Loss deduction. The casualty loss can be taken by either amending your 2006 return or by taking it as part of your 2007 return. Which is right will depend on your tax situation.
And let me end this post with a heartfelt thanks to the firefighters and other emergency personnel who battled the fires. The Santiago fire burned just a few miles north of my home and office. Today, I drove to Foothill Ranch along the 241 Toll Road. The fire burned to the toll road…and even burned a little brush on the south side of the highway. A grove of avocado trees was damaged. The fire burned the hills all around the community of Foothill Ranch. Yet the homes and businesses of Foothill Ranch appeared to have escaped damage.