2002-16-AUS & DAL2002-16,  July 16, 2002 

AUSTIN & DALLAS – The Internal Revenue Service announced today that it is extending filing and paying deadlines for flood victims in 24 Texas counties declared federal disaster areas.
  
For most federal tax returns originally due on or after June 29, affected taxpayers located in the disaster area have until August 13, 2002 to file the returns and pay any taxes due without penalty. If penalties are unintentionally assessed, taxpayers can contact the IRS and request penalty abatement. The extension does not apply to taxpayers who file Form 5500 series returns, information returns or employment and excise tax deposits; however, penalties on payroll tax deposits may be abated during this period due to reasonable cause.

Disaster area taxpayers can request free photocopies of previously-filed tax returns by filling out IRS Form 4506. 

In order to help the IRS identify and process tax returns and any other correspondence, taxpayers are asked to write across the top margin of the tax form, in red ink, “Texas Severe Storms and Flooding Disaster.” 

Disaster area property owners who suffered uninsured or unreimbursed losses may choose to deduct casualty losses on either their 2001 or 2002 federal income tax return.  When making this choice, the IRS advises victims to consider which year gives them the bigger tax benefit and how soon they need the money.

An eligible taxpayer who has already sent in their 2001 return and wishes to claim losses for that year can file an amended return using IRS Form 1040X.

To learn more about claiming disaster losses, see IRS Publication 547, "Casualties, Disasters, and Thefts."
 
Currently, the Presidentially-declared disaster area includes the counties of Atascosa, Bandera, Bexar, Blanco, Brown, Caldwell, Comal, Eastland, Frio, Gillespie, Goliad, Gonzales, Guadalupe, Hays, Karnes, Kendall, Kerr, La Salle, Medina, Real, Taylor, Travis, Uvalde and Wilson.