RICH-2002-28,  April 8, 2002

RICHMOND, VA— Taxpayers located in the southwestern Virginia counties of Dickenson, Lee, Russell, Scott, Smyth, Tazewell, Washington, and Wise, and the city of Norton, are granted an extension of time to May 3, 2002, to file returns and pay tax due for federal tax returns originally due on or after March 17, 2002, and before May 3, 2002.

“On April 3, 2002, President Bush declared these Virginia counties and the independent city of Norton as federal disaster areas,” said Gloria Wajciechowski, IRS spokesperson for Virginia and Eastern North Carolina. “The declaration covers damage to private property from severe storms and flooding that occurred over the period of March 17-20, 2002. IRS Form 4684, 'Casualties and Thefts,' must be completed and filed with the tax return when claiming losses.”

“The automatic extension does not apply to Form 5500 series returns, information returns, or employment and excise tax deposits,” Wajciechowski said. “However, penalties on these tax deposits may be abated during this period due to reasonable cause.”

Other tax provisions provided by the declaration include:

• Interest will be abated for amounts paid by the extended due date.
• User fees will be waived for requests of photocopies of tax returns.
• Requests from taxpayers in the impacted areas for photocopies of tax returns will be expedited. 

IRS Publication 547, "Casualties, Disasters, and Thefts," and Publication 584, "Casualty, Disaster, and Theft Loss Workbook," provide additional details about claiming losses.   

Affected taxpayers, whether individuals or businesses in a presidentially declared disaster area, have the option of claiming their casualty losses on the tax return for the year of the disaster or the previous year, whichever provides the greater tax benefit to the taxpayers. Taxpayers must reduce the amount of their loss by any insurance or other reimbursements received or expected.

“When these taxpayers file their returns, they should label across the top margin in red, ‘Southwestern Virginia Flood Disaster,’” said Wajciechowski.

Assistance is available for disaster-related questions by calling the IRS toll-free at 1-800-829-1040.

Listing of Disaster Area Zip Codes, by County (Norton City at end)