When a disaster such as Hurricane Sandy strikes, the IRS Tax Code provides for general tax relief for all casualty victims.
The IRS is currently providing tax relief for victims of Hurricane Sandy. In the counties of New York; Bronx, Kings, Queens, Nassau, New York, Orange, Putnam, Richmond, Rockland, Sullivan, Suffolk, Ulster and Westchester that have been declared a federal disaster area. This relief expends to individuals and businesses in these counties.
The relief may include, if you are eligible;
- Postponement of time to file returns, and pay taxes.
- Temporary suspension of collection activities for past due tax debts.
- Waiver of the usual fees and expedited requests for copies of previously filed tax returns.
The IRS is also permitted to abate penalties for taxpayers in this area. If an affected taxpayer receives a penalty notice from the IRS, the taxpayer or representative should call the number on the notice and request that the IRS abate the penalty charged. However, keep in mind that penalties will only be abated for taxpayers whose due date falls within the postponement period.