Yes, there is assistance for Disaster and Emergency Relief provided by the IRS. Here are the key points:
- Federally Declared Disaster Areas: If you are in an area declared by the President to be eligible for federal assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, you may be able to deduct the loss or partial loss of personal and business use property on your federal income tax return for the year you incurred the loss. You can also elect to deduct your loss on an amended return for the prior year to receive a refund of some or all of the taxes paid on your prior year return.
- Qualified Disaster Relief Payments: Under IRC Section 139, qualified disaster relief payments are not taxable as income and are not subject to employment taxes or withholding. These payments include:
- Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a qualified disaster.
- Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a qualified disaster.
- Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a qualified disaster.
- Employer-Sponsored Assistance Programs: Employers can establish public charities to provide assistance programs to respond to any type of disaster or employee emergency hardship situations. These programs must ensure that the class of beneficiaries is large or indefinite, recipients are selected based on an objective determination of need, and the selection is made by an independent selection committee.
- IRS Disaster Assistance Hotline: The IRS provides a Disaster Assistance Hotline at 1-866-562-5227 for explanations on filing and payment relief due to a disaster.
- IRS Forms and Publications: The IRS offers various forms and publications to assist with disaster-related tax issues, including:
- Form 4684, Casualties and Thefts
- Publication 547, Casualties, Disasters, and Thefts
- Publication 2194, Disaster Resource Guide for Individuals and Businesses
- Postponement of Tax Deadlines: The IRS may postpone certain tax deadlines for taxpayers affected by a federally declared disaster. This includes filing income, excise, and employment tax returns, paying taxes, and making contributions to traditional or Roth IRAs.
- Documentation and Reporting: Charitable organizations providing disaster relief must maintain adequate records to show that the payments further the organization's charitable purposes and that the victims served are needy or distressed. This includes documenting the type of assistance provided, costs, purpose, criteria for disbursing assistance, and the selection process.
- Expedited Processing of Applications for Exemption: New disaster relief or emergency hardship organizations may request expedited handling of their application for tax-exempt status if they demonstrate an immediate need for disaster relief services.
For more detailed information, you can refer to IRS publications and the IRS website.
Sources:
Publication 547 (2023)
Publication 2194 (7/2018)
IRM Part 25. Special Topics. Chapter 16. Disaster Assistance and Emergency Relief. Section 1. Program Guidelines
IRM Part 4. Examining Process. Chapter 2. General Examining Procedures. Section 2. Disaster Assistance Relief
Publication 3833 (12/2014)
IRM Part 25. Special Topics. Chapter 16. Disaster Assistance and Emergency Relief. Section 9. Federally Declared Disaster, or Terrorist or Military Action Procedures for TE/GE
