Federal Tax Relief Available For Disaster Victims 

Release Date: June 22, 2004
Release Number: 1517-030

» More Information on Nebraska Severe Storms, Tornadoes and Flooding

LINCOLN, Neb. -- Nebraska residents affected by the severe storms, tornadoes and flooding that began May 20, 2004 may be eligible for various forms of tax relief that could lessen some losses, federal and state recovery officials said today.

“The U.S. Internal Revenue Service permits those with casualty losses suffered as a result of the disaster to claim this year’s losses on last year’s return or to amend last year’s return if it has already been mailed in,” said the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) federal coordinating officer, Scott Wells.

Casualty losses for tax purposes generally are based on the decrease in fair market value of the property as a result of the disaster, minus any insurance payments or other reimbursements received. The IRS will ask for the latest tax return, estimates of repairs, before and after photographs, appraisals or any other loss documentation.

State Coordinating Officer Cindy Newsham advises people affected by the disaster to check with their local county auditor about the possibility of claiming a reduction in the taxable value of property destroyed or damaged.

Casualty losses can be claimed on IRS form 4684. You can obtain a copy of IRS publication 547 and 2194 to help guide you through the process. Both the form and publication, and more information can be found at the IRS website at www.IRS.gov or by calling toll free 1-800-829-1040.

On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages the National Flood Insurance Program and the U.S. Fire Administration.

Last Modified: Tuesday, 22-Jun-2004 10:09:58