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KATRINA TAX UPDATE: SEPTEMBER 9, 2005
September 09, 2005
The IRS has now given taxpayers in the Katrina disaster area until January 3, 2006 to pay taxes and file returns due starting August 29 through January 2. Among other items, this covers third quarter individual and corporate estimates; corporate extended returns due September 15; individual extended returns due October 15; and corporate estimated tax payments due December 15. (IR 2005-96)
LEAVE-SHARING.The IRS has also announced that "leave-donation" programs will be tax-preferred. This covers arrangements where employees give up accrued vacation in exchange for the employer making a cash payment of accrued vacation pay to charity (IR 2005-97; Notice 2005-68). The payments will be deductible to the employer without being subject to employment taxes; the employee will not pick up the payments in income. This only covers payments for Katrina relief, and only if the payments are remitted to charity before January 1, 2007
Taxation of disaster relief payments is covered in this comprehensive summary of Katrina and taxes provided by CCH (via TaxGuru.net).
THEY STILL NEED HELP. Consider gifts to the Salvation Army, the Red Cross, or other worthy charities.
LINK: Summary of IRS Hurricane Relief
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Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
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