Tax Refunds May Await Tornado Victims
Release Date: April 10, 2006
Release Number: 1634-003
» More Information on Tennessee Severe Storms and Tornadoes
JACKSON, TENN. -- Residents of Tennessee's tornado disaster counties are eligible to claim income tax refunds from the Internal Revenue Service (IRS) if they suffered uninsured property losses in the tornadoes and severe storms of April 2.
The currently declared counties are Dyer and Gibson. Damage assessments are being conducted in other counties to determine their eligibility for federal assistance.
Storm victims who reside in these counties may be eligible to claim casualty losses immediately by amending their last tax return as a quick source of much-needed cash. Casualty losses for tax purposes generally are based on the decrease in fair-market value of a property, or cost plus improvements.
When the loss occurs in a presidentially declared disaster, as in these Tennessee counties, taxpayers can choose to claim the deduction on federal tax returns for the current tax year (2005) or the previous year (2004), whichever is financially best for the taxpayer.
Taxpayers do not have to live in a declared county to claim a standard casualty loss tax refund, but must meet certain tax law requirements to be eligible.
Internal Revenue Service (IRS) claims are filed on Form 4684. Obtaining a copy of IRS Publication 547 will help guide taxpayers through the process. Federal tax forms and publications are available free of charge by calling 1-800-829-3676 or on the IRS Web site.
For more information, call the Internal Revenue Service toll-free at 1-800-829-1040 or visit the IRS Web site.
Last Modified: Thursday, 13-Apr-2006 08:40:53