SHAMOKIN - As residents clean up from Tropical Storm Lee, H&R Block advises victims on the tax implications for those who already filed a 2010 return, as well as those who were delayed by the disaster.
"This disaster has affected thousands of residents in certain areas of Pennsylvania. We are here to help our neighbors get back on track," said Lamont Masser, franchisee at H&R Block. "Taxpayers need to know there is monetary relief in the form of their tax return."
In the aftermath of Lee, the president declared federal disaster areas in the following counties: Adams, Bradford, Columbia, Cumberland, Dauphin, Lancaster, Lebanon, Luzerne, Lycoming, Montour, Northumberland, Perry, Schuylkill, Snyder, Sullivan, Susquehanna, Union, Wyoming and York. Taxpayers who live or have a business in any of these counties may qualify for tax relief.
With this announcement certain tax filing and payment deadlines have been postponed to Oct. 31. This includes corporations or business that obtained an extension to file their 2010 returns by Sept. 15 and individuals or businesses that received a similar extension until Oct. 17. The estimated third quarter tax payment is also postponed.
"This means the IRS will not assess penalties or interest if tax returns are filed and other obligations are performed within a specified date," said Masser. "Taxpayers could be affected if they live, work, or have financial records located in a federal disaster area, or are a qualified relief worker assisting in the disaster area."
Victims can consult FEMA at http://www.fema.gov/news/recentnews.fema and the IRS's disaster information site for the most up-to-date lists of disaster areas and available relief.
Those affected also have the option of claiming 2011 disaster-related casualty losses on their federal return for either tax year 2010 or 2011. Waiting to claim the loss on the 2011 return, rather than filing an amended 2010 return, could result in greater tax savings. However, claiming a loss on a 2010 return allows disaster victims to recoup their losses more quickly. Calculating and claiming a casualty loss can be a confusing process so taxpayers should considering asking a tax professional for assistance in choosing the best option.