On March 27, 2008, the IRS announced that victims of the recent storms in Georgia may qualify for tax relief. On March 14th, the federal government declared Bartow, Burke, Dekalb, Floyd, Fulton, Jefferson and Polk counties a presidential disaster area. Taxpayers who reside or have a business in the affected areas are eligible for tax relief. Taxpayers not in the covered disaster area whose books, records or tax professionals' offices are in the covered disaster area are also entitled to relief.
The IRS is postponing until May 19th certain deadlines for taxpayers who reside or have a business in the affected areas. The postponement applies to return filing, tax payment and other time-sensitive acts otherwise due between March 14th and May 19th. The IRS will also waive the penalty for failure to deposit penalties for employment and excise tax deposits due on or after March 14th and on or before March 31st, as long as the deposits are made by March 31st. The relief does not apply to W-2s, 1099s, 1098s, 5498s or Forms 1042-S or 8027.
Additionally, taxpayers in the disaster area have the option of claiming disaster related casualty losses on their federal income tax returns for either 2008 or 2007. Taxpayers claiming casualty losses related to the storms on their 2007 returns should write "Georgia Severe Storms and Tornadoes" across the top of the appropriate forms so that the IRS can expedite the processing of the refund.
In our discussions with the State of Georgia, they are going to grant similar relief to Georgia storm victims and should release an announcement soon.
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