September 20, 2020 …
On Wednesday, the IRS announced tax relief for Oregon wildfires and straight-line wind victims.* We pray you are one of the fortunate ones spared. Unfortunately, some of our clients lost their homes and businesses.
If you ask what straight-line winds are, trust, you are not alone! So a quick detour to worlds meteorological. Straight-line winds come out of a thunderstorm and are just as ferocious as tornadoes. More common than a tornado, however. If straight-line winds meet or exceed 58 miles per hour, the storm is classified as severe. As the name suggests, straight-line wind damage pushes debris in the same direction the wind is blowing, while tornado damage scatters debris in a variety of different directions.
We sure had these straight-lines last week. Now to the IRS tax relief. (Next week we will outline all relief options available).
Covered Disaster Area
If you reside or have a business in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties, you qualify for tax relief.
If you reside in localities that are added later to the disaster area, you will automatically receive the same filing and payment relief.
The Relief
The tax relief comes in the form of extensions. If you reside or have a business in the disaster area, certain tax-filings and tax-payment deadlines are extended to January 15, 2021.
Specifically, extensions are provided for:
- Individual and business tax filers who had a valid extension to file their 2019 return due to run out on October 15, 2020.
- Third quarter estimated tax payment due on September 15, 2020.
- Quarterly payroll and excise tax returns normally due on November 2, 2020.
- Tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16, 2020.
The IRS will automatically identify taxpayers located in the covered disaster area and apply filing and payment relief.
If you reside or have a business located outside the covered disaster area, you should call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Casualty Loss
Affected taxpayers in a federally declared disaster area – which our area was declared a disaster by President Trump last week read the declaration here – have the option of claiming a disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year.
You may deduct personal property losses that are NOT COVERED by insurance or other reimbursement.
If you have any questions regarding these IRS tax relief options or have any other questions, please call us. As always, we are in your corner.
Stay safe!
Team Legacy CPA
(541) 326-0993