Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Tax Relief Available to Ohio Flood Victims
COLUMBUS, Ohio -- Ohio residents affected by the flooding between May 18 and June 21 may be eligible for tax relief that could lessen some of their losses."The U.S. Internal Revenue Service permits those with casualty losses from the disaster to claim this year's losses on last year's income tax return, even if it's already been sent in," said Lee Champagne, coordinating officer for the U.S. Department of Homeland Security's Federal Emergency Management Agency. "This can result in a quicker refund." The disaster tax program is available to taxpayers who live in Mahoning and Columbiana counties and 21 other counties and sustained losses as a direct result of the flooding.The federal tax relief may include filing extensions and relaxation of interest and late-filing penalties on returns or taxes for reasonable cause. In addition, any federal or state grants received under the current disaster declaration are tax-free, and do not need to be reported as income, Champagne said."We want everyone who suffered losses to access the programs if they are eligible," added Dale W. Shipley, state coordinating officer and executive director of the Ohio Emergency Management Agency. Shipley also advised people affected by the disaster to check with their county auditor about a reduction in the taxable value of property destroyed or damaged. "The reduction would be prorated based on the calendar quarter when the damage occurred," he noted.Property owners must file an application for a reduction with the county auditor within 30 days of the end of the quarter in which the damage occurred -- in this case, by July 30. For federal taxes, casualty losses can be claimed on IRS form 4684, and IRS publications 547 and 2194 offers guides to the process. Both the form and publications, and more information, can be found online.Visit the Internal Revenue Service at www.IRS.gov"