Tax Refund A Possibility For Winter Storm Victims
Release Date: April 9, 2003
Release Number: 1455-29
» More Information on West Virginia Severe Winter Storms
Charleston, WV - People and businesses damaged by the severe winter storms, record/near record snow, heavy rains, flooding and landslides that occurred Feb 16 may be eligible for Federal tax relief.
The U.S. Internal Revenue Service (IRS) offers assistance to disaster victims. The assistance will vary depending on the extent and severity of the disaster.
Lessen the Burden
"Granting disaster tax relief can help lessen some of the burden that many West Virginians are now facing as a result of the storms," said Jim Twisdale, IRS, state disaster coordinator for West Virginia. "While I certainly recognize that during times of hardship like this, taxes are not a top priority for those in crisis; it is, however important for these people to know that relief is available to them. For the Feb. 16 disaster we are offering some select provisions designed to minimize intrusion and lessen taxpayer burden."
Under it's March directive, the IRS will abate penalties, defer enforcement activities and waive user fees for requests of photocopies of tax returns.
Specific Relief Provisions
"We generally offer relief by county and zip codes. If taxpayers were affected outside of the counties initially identified and they self-identify as being significantly impacted, they will be offered the same relief," Twisdale said.
Taxpayers who file returns or make payments within 60 days after their respective due dates
and are directly affected by the severe winter storms and flooding should contact the IRS at
1-800-829-1040 to request abatement of any penalties assessed based on reasonable cause (interest cannot be abated).
In general, field enforcement activities are not being suspended automatically. However, any enforcement related written or telephone contact made with taxpayers in the IRS Designated.
Disaster Areas from any of the IRS Operating Divisions should begin with an assessment of the impact of the storm(s) on the taxpayer and should provide opportunity to defer action for a reasonable period of time.
User fees should be waived for requests of photocopies of tax returns and all requests from taxpayers in the impacted areas should be expedited. These requests, when filed, should be labeled across the top margin in red "Severe Winter Storms/Flooding-WVA."
West Virginia State Taxes
The West Virginia Code provides the Tax Commissioner with the authority to waive additions to tax for reasonable cause.
"Damage sustained by severe storms, flooding and landslides that result in casualty losses would most likely be eligible for waiver of additions to tax," Lee Ann Kennedy, director, for the Taxpayer Services Division of the West Virginia State Tax Department, said.
Residents and/or business owners who receive billings that include additions to tax must submit a written statement with their billing that explains why they were delinquent.
Property Tax
The county assessor is charged with the responsibility of annually assessing property at 60 percent of the property's current market value as of the first day of July. To the extent that storm damage is present on the July 1 assessment date, the extent of the damage will be determined and the property's assessed valuation will be adjusted accordingly.
"If a property is damaged to the extent that it is uninhabitable on the July 1 assessment date, and construction is under way to repair the structure, only the material and supplies portion of the construction will be assessed for property tax purposes," Jerry Knight, director, for the Property Tax Division of the West Virginia State Tax Department, said.
Staff of the county assessor's office will be conducting field reviews to identify damage as of July 1, 2003, and adjustments to assessments will be made where necessary.
Individual assistance programs were made available through the disaster declaration issued by President Bush on March 14 at the request of Governor Bob Wise. Residents and business owners who believe they have suffered losses in the winter storm are urged to call FEMA's toll-free registration line at 1-800-621-FEMA (3362). The registration line for persons who are hearing or speech impaired is TTY 1-800-462-7585.
Last Modified: Friday, 11-Apr-2003 10:41:22