NY - IRS Grants Tax Relief For Flooding Victims

New York - The Internal Revenue Service is extending the deadlines for tax payments and other time-sensitive acts for people living in the 12 counties that have been declared in the Presidential Disaster Area following the June floods. The counties are: Broome, Chenango, Delaware, Herkimer, Montgomery, Oneida, Orange, Otsego, Schoharie, Sullivan, Tioga, and Ulster.

The deadline to complete time-sensitive IRS acts has been extended by the agency to September 5th, 2006. Also, the IRS is waiving the failure to deposit penalty for employment and excise deposits to July 11th, 2006.
If you take advantage of the extended deadlines, you need to write “Severe Storms - NY” in red ink at the top of your tax forms. If you file electronically, use the disaster designation.

Also, if you live in the disaster area, you can claim casualty losses on your federal income tax return for either this year, or last year. The IRS says waiting to claim it on this year’s taxes may result in a greater tax saving.