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IRS Offers Tax Relief After Major Disasters

By: Internal Revenue Service, IRS.gov

IRS offers tax relief after major disasters

Disaster relief can be authorized by the IRS when certain criteria from the Federal Emergency Management Agency are met. Generally, the IRS will authorize disaster tax relief to all areas identified on a major disaster declaration if FEMA identifies at least one area qualifying for their Individual Assistance program.

Those who have been affected by a disaster can visit Tax relief in disaster situations on IRS.gov for information on what tax relief applies to them and other resources that will help them recover.

Tax relief
The following types of tax relief are a few of the ways the IRS helps after a major disaster.

  • The IRS gives taxpayers more time to file and pay: Taxpayers 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. The IRS's disaster assistance page provides updates and links to resources. Information is also available on the IRS X account (formerly Twitter). Taxpayers can also call the agency's disaster line at 866-532-5227 with questions.

  • Disaster victims may qualify for a casualty loss tax deduction: Affected people who have lost or damaged property due to a federally declared disaster may qualify to claim a casualty loss deduction. They can claim this on their current or prior-year tax return. This may result in a larger refund.

  • Taxpayers can apply for a disaster loan or grant: The Small Business Administration offers financial help to business owners, homeowners and renters in a federally declared disaster area. To qualify, a taxpayer must have filed all required tax returns.

What taxpayers need to do
Taxpayers may also need to access their tax records or notify the IRS if they’ve relocated.

Get a tax transcript
People who need a tax transcript to support their disaster claims can get free transcripts by using Get Transcript to access their transcripts immediately online or to request mail delivery. They can also call 800-908-9946 to request mail delivery or submit Form 4506-T, Request for Transcript of Tax Return.

People who need a copy of their tax return should file Form 4506, Request for Copy of Tax Return. The IRS waives the usual fees and expedites requests for copies of tax returns for people who need them to apply for disaster-related benefits or to file amended returns claiming disaster-related losses. If filing Forms 4506-T or 4506, the taxpayer should state on the form the request is disaster related and list the state and type of event. The taxpayer’s ability to provide this information helps to speed up the process.

Notify the IRS of any change of address
After a disaster, people might need to temporarily relocate. Those who move should notify the IRS of their new address by submitting Form 8822, Change of Address, or call the IRS Disaster Hotline at 866-562-5227.

The IRS encourages affected taxpayers to review all federal disaster relief at DisasterAssistance.gov.

More information

Publication 547, Casualties, Disasters, and Thefts