| RS has announced further tax relief for victims of | | | | the IRS to identify themselves. To do so, |
| Hurricane Katrina due to slow clean up efforts and | | | | taxpayers must contact the IRS by calling |
| obviously devastated areas. | | | | 1-866-562-5227, a disaster relief hotline or writing |
| The IRS is giving relief to both businesses and | | | | Hurricane Katrina on their tax returns when filing. |
| individual taxpayers in certain areas that have | | | | Importantly, none of these extensions applies to |
| been absolutely wiped out. Instead of being | | | | any ongoing business tax requirements for entities |
| required to file in March or April, depending on | | | | which are functioning. Ongoing business tax |
| whether the payer is a business or individual, all | | | | requirements include items such as filing |
| taxpayers in certain regions will have till August | | | | employment tax deposits for employee wages if |
| 28, 2006. Further, the IRS is waiving all late filing | | | | your business is still functioning. You can file your |
| penalties on people in the impacted areas even if | | | | annual tax return late, but not monthly or |
| they don’t file by the August 28, 2006 | | | | quarterly items if you are up and running. |
| deadline. | | | | Without doubt, the Internal Revenue Service is |
| This automatic extension represents a very | | | | the most maligned agency in the government. It |
| positive move by the IRS, but readers should | | | | is ironic that the agency has made positive step |
| keep in mind it doesn’t apply to all areas. | | | | after positive step to grant relief of all sorts to |
| Only the most severely damaged areas get to | | | | victims in the disaster zone. The IRS has even |
| take advantage of the extension. Those areas | | | | published articles and press releases telling victims |
| are in Louisiana: Cameron, Jefferson, Orleans, | | | | how to file amended taxes to claim the losses on |
| Plaquemines, St. Bernard, St. Charles, and St. | | | | previous tax returns and get refunds. |
| Tammany. The automatic extension is also applied | | | | Compared to the rest of the federal government, |
| to individuals living in the Mississippi counties of | | | | the IRS is clearly the only agency that has |
| Hancock, Harrison and Jackson. | | | | stepped up and delivered for the victims of |
| For impacted taxpayers who live outside of these | | | | Hurricane Katrina. For once, the IRS deserves a |
| areas, the IRS is willing to grant more time to file | | | | standing ovation. |
| taxes. Said taxpayers, however, must contact | | | | |