9/7/2021
No matter what type or how devastating a disaster is, the Federal Emergency Management Agency (FEMA) has to issue a major disaster declaration before the IRS can authorize tax relief. The IRS will typically authorize disaster tax relief to all areas identified on a major disaster declaration once FEMA identifies at least one area that qualifies for their Individual Assistance program.
Tax-Related Events That Usually Happen After Major Disasters:
The IRS gives people more time to file and pay.
Those whose address of record is in an area qualifying for IRS disaster tax relief will automatically receive extra time from the IRS to file returns and pay taxes. Their disaster assistance page provides disaster updates and links to resources. Information is also usually available on the IRS Twitter account. People with questions can also call the IRS disaster line at 866-532-5227.
People may qualify for a casualty loss tax deduction.
People who have damaged or lost property due to a federally declared disaster may qualify to claim a casualty loss deduction which they can claim on either their current or prior-year tax return, which may result in a larger refund.
People can apply for a disaster loan or grant.
The Small Business Administration (SBA) offers financial help to business owners, homeowners and renters in a federally declared disaster area. People must have filed all required tax returns in order to qualify.
People might need to request their tax return transcript.
People who need a tax transcript to support their disaster claims can get free transcripts by using the IRS Get Transcript online tool to access their them immediately online, or to request delivery by mail. They can also call 800-908-9946 to request mail delivery or submit Form 4506-T, Request for Transcript of Tax Return.
Those who need a copy of their tax return should file Form 4506, Request for Copy of Tax Return. The IRS waives the fees and expedites requests for people who need them to apply for disaster-related benefits or file amended returns claiming disaster-related losses. People who file Forms 4506-T or 4506 should state that the request is disaster related and list the state and type of event on the form to help speed up the process.
People who relocate need to submit a change of address.
People who need to temporarily relocate after a disaster should notify the IRS of their new address by submitting Form 8822, Change of Address.
Those affected should review all of the federal disaster relief at disasterassistance.gov.
Resources: FAQs for disaster victims Publication 2194, Disaster Resource Guide for Individuals and Businesses Publication 584, Disaster Resource Guide for Individuals and Businesses Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook Publication 547, Casualties, Disasters, and Thefts