Client Alerts
May 13, 2015

IRS Announces Tax Relief for Kentucky Severe Storm Victims

Stites & Harbison Client Alert, May 13, 2015

by Stites & Harbison, PLLC

On May 5, 2015 the IRS announced in a news release that victims of the severe storms that occurred beginning April 2, 2015 in certain parts of Kentucky may be able to delay filing certain tax returns until July 31, 2015.

According to the IRS, “The President has declared Bath, Bourbon, Carter, Elliott, Franklin, Jefferson, Lawrence, Madison, Rowan and Scott counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.” The IRS stated further that “certain deadlines falling on or after April 2, and on or before July 31, have been postponed to July 31, 2015. This includes the April 15 deadline for filing 2014 individual income tax returns, making income tax payments and making 2014 contributions to an individual retirement account (IRA).” This relief also includes “the May 15 deadline for many tax-exempt organizations to file their annual Form 990 and the June 15 deadline for making quarterly estimated tax payments.” A number of other business tax returns are also included.

As for other relief, “Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.” Moreover, “Individuals may deduct personal property losses that are not covered by insurance or other reimbursements.” Finally, “The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers.”

Related Capabilities
Trusts & Estates and Family Law Tax-Exempt Debt Financing Taxation State & Local Tax Litigation Trusts & Estates