Tax News
Disaster Relief for Irene Victims

In the wake of Hurricane Irene, the President declared disaster areas in a number of counties on the East Coast as a result of damage caused by the storm. Based on these declarations, the IRS postponed due dates on certain tax filing and payment deadlines to October 31, 2011, for disaster-area victims. For more information on the start dates for the tax relief in the various locations affected by Hurricane Irene, go to irs.gov, and search for IR-2011-87, September 1, 2011. The postponement includes filing and payment deadlines during the disaster period. This extension was made under the authority of Internal Revenue Code (IRC) Section 7508A, therefore, California automatically would follow the federal treatment for extended filing and payment deadlines during the disaster period.

For this disaster, the IRS also made another type of announcement granting relief based on whether or not the preparer was affected by Hurricane Irene. Using IR 2011-88, it granted taxpayers whose preparers were affected by Hurricane Irene until September 22 to file returns normally due September 15. The preparer did not necessarily need to be located in the presidentially declared disaster area, but only located in an area that was under an evacuation order or a severe weather warning because of Hurricane Irene. This relief, which primarily applied to corporations, partnerships, and trusts, that previously obtained a tax filing extension, was available to taxpayers regardless of their location. This relief did not apply to any tax payment requirements. California will allow this one week extension using the authority given by statutes that allow us to grant a reasonable extension for filing any return, declaration, statement, or other document for both personal income and corporate taxpayers.

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