Assistance for disaster victims.

• Author: Laffie, Lesli S.
• Position: From the IRS - Tax issues related to attacks of Pentagon and World Trade Center

Treasury and the IRS have issued a number of pronouncements addressing tax issues stemming from the terrorist attacks on the Pentagon and World Trade Center. President Bush has declared Arlington County, VA and the five boroughs of New York City (Bronx, Kings, New York, Queens and Richmond) disaster areas.

Taxpayers in these areas are eligible for relief, as are "affected taxpayers"--those with a place of employment or records maintained in a disaster area, relief workers and victims on the high-jacked planes.

The IRS has offered the following relief in Notice 2001-61:

* Affected individuals with a filing extension beyond Sept. 10, 2001 have until Feb. 12, 2002 to file. This rule does not extend time to pay, but Sept. 11, 2001-Feb. 12, 2002 will be excluded in computing any failure-to-pay penalty.

* Affected taxpayers other than individuals with an original filing deadline (for any Federal tax return) that falls between Sept. 11, 2001 and Nov. 30, 2001 have an additional six months plus 120 days to file. This does not include an extension of time to pay, but Sept. 11, 2001-Jan. 9, 2002 will be excluded from a penalty...