[StBernard] IRS necessary information

[Westley Annis]

This information came directly from the Internal Revenue Service (IRS). 
Please note the extension deadlines moved to January 3, 2006.  Please also
note that the casualty losses sustained in 2005 can be carried back to
your 2004 returns.  Check with your tax preparer to determine if using the
casualty loss on your 2004 return (to be amended if filed already) or 2005
return will give you the best tax advantage.  Tax planning is extremely
important now as never before.

Dan Johnson, CPA


5,000 IRS Telephone Operators Register Hurricane Victims for FEMA Benefits

WASHINGTON - The Internal Revenue Service announced today that several
thousand
telephone operators are helping the Federal Emergency Management Agency
(FEMA)
answer telephone calls from Hurricane Katrina victims.

The IRS has 2,743 employees working these telephone calls today at
locations in
Atlanta, Buffalo, Dallas and Philadelphia. By Friday, the number of IRS
employees
will reach nearly 5,000.

IRS telephone assisters are taking calls seven days a week from 7:30 a.m.
to 11:30
p.m. to help people with the FEMA registration process. Hurricane victims
call in
and provide IRS employees with basic information, such as name, address
and types of
property damage.  They are also referred to other essential services, like
the
American Red Cross.

"We've given the FEMA registration process priority over our regular
telephone
service to taxpayers. Hundreds of thousands of families have suffered
because of
this hurricane and they are scattered in communities across America," said
IRS
Commissioner Mark W. Everson.  "They can't get the cash and housing
benefits to
which they are entitled until they register with FEMA. By calling back to
work over
4,000 of our seasonal workers, we are speeding assistance to hurricane
victims while
minimizing disruption to our normal taxpayer services."

Those needing FEMA assistance can call 1-800-621-FEMA (3362).

The IRS began its assistance efforts on Aug. 29 at the request of FEMA. 
Through
mid-day Wednesday, IRS employees have answered 175,000 calls with a 92
second
average speed of answer.  The average length of call is 16 minutes. About
one-third
of the FEMA calls are being handled by IRS assistors, with that number
expected to
top 50 percent soon.

Regular IRS telephone operations involving tax questions will continue
during this
period.

The IRS has also established a separate toll-free number for Katrina
victims with
tax issues. That number is 1-866-562-5227.

Providing telephone support for FEMA is just the latest step the IRS has
taken to
assist the victims of Hurricane Katrina.  Other steps, the IRS has taken
include:

.        Victims of Hurricane Katrina will have until Jan. 3, 2006 to file
any
returns, pay any taxes or make any deposits due.

.        An abatement of interest and any late filing, late payment or
failure to
deposit penalties that would otherwise apply to those in Hurricane Katrina
affected
areas. This relief includes the Sept. 15 due date for estimated taxes and
for
calendar-year corporate returns with automatic extensions; the Oct. 17
deadline for
individuals who received a second extension for filing their individual
income tax
returns; and the Oct. 31 deadline for filing quarterly federal employment
and excise
tax returns.

.        Affected taxpayers in a Presidential Disaster Area have the
option of
claiming disaster-related casualty losses on their federal income tax
return for
either this year or last year. Claiming the loss on an original or amended
return
for last year will get the taxpayer an earlier refund; alternatively,
waiting to
claim the loss on this year's return could result in a greater tax saving,
depending
on other income factors.

.        Providing special tax treatment to support leave-based donation
programs to
aid victims who have suffered from the extraordinary destruction caused by
Hurricane
Katrina.  Under these programs, employees donate their vacation, sick or
personal
leave in exchange for employer cash payments made to qualified tax-exempt
organizations providing relief for victims of Hurricane Katrina.

.        Hurricane Katrina also impacted petroleum and gasoline production,
affecting gasoline prices. In recognition of recent gasoline price
increases, the
IRS made a special adjustment to the standard mileage reimbursement rate
for the
final months of 2005.

In the aftermath of this natural disaster, the IRS assures individuals,
businesses
and tax professionals that it will continue to work aggressively to
monitor the
situation and resolve other potential tax administration issues as they are
identified.

Links:

Hurricane Katrina: Information on Charitable Giving, Tax-Relief Issues --
http://www.irs.gov/newsroom/article/0,,id=147085,00.html
Tax Relief Granted by IRS --
http://www.irs.gov/newsroom/article/0,,id=147371,00.html