On September 20, 2012, the Internal Revenue Service declared that victims of severe storms in parts of West Virginia that occurred on or around June 29, 2012, may receive tax relief.  President Obama has declared a federal disaster area in the counties of Fayette, Kanawha, Nicholas, and Raleigh.  If you have a personal residence or business residence in any of these counties, you can receive tax relief. 

The declaration from the President lets the IRS postpone deadlines for individuals and businesses in the disaster area.  The IRS reports that certain deadlines on June 29, 2012 or after are postponed until August 28, 2012.  The IRS is also waiving all failure-to-deposit penalties for employment and excise deposits that were due between June 19 and July 16, 2012.  If you receive a failure-to-deposit penalty after July 16, you still need to make the payment. 

If you received penalty notice from the IRS and you believe you can waive the fee, you need to call the number located on the notice.  You will speak with an IRS representative, and they will clear the interest and penalties.  It’s important to note that the penalties or interest can only be cleared if the taxpayer had an original or extended payment or deposit due date.  This includes extended filing or payment due dates. 

The relief also applies to Form 5500 series returns.  “Like-kind” exchanges of property may also apply, but you should refer to section 17 of Rev. Proc. 2007-56.  The postponement does not apply to returns like W-2, 1098, 1099, or Forms 1042-S or 8027. 

The IRS will automatically identify all taxpayers affected within the disaster area.  However, taxpayers with a residence or business affected by the storms still need to call the IRS disaster hotline for tax relief.  The number is 866-562-5227. 

Source: Internal Revenue Service