[StBernard] IR-2006-030 "IRS Postpones Taxpayer Deadlines in Areas Hit Hardest by Katrina"

[Westley Annis]

Hey Westley
Please forward this IRS newswire release in your email database for all the
world to see.  This is extremely good news for all of us trying to capture
our correct and fair tax calculations in a comfortable time frame.
This essentially gives us a year from the storm to start the deadline clock
back up again.  Thanks, Westley.

Dan Johnson, CPA
504-276-8581
dan at danjohnsoncpa.com

---------------------------- Original Message ----------------------------
Subject: IR-2006-030 "IRS Postpones Taxpayer Deadlines in Areas Hit Hardest
by Katrina"
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IRS Postpones Taxpayer Deadlines in Areas Hit Hardest by Katrina

IR-2006-30, Feb. 17, 2006

WASHINGTON — The Internal Revenue Service is postponing taxpayer filing and
payment deadlines for affected taxpayers hit hardest by Hurricane Katrina.

Individual and business taxpayers in the most severely damaged parishes and
counties of Louisiana and Mississippi automatically have through Aug.
28, 2006, to file returns and make certain tax payments that had a due date
or extended due date on or after Aug. 29, 2005, and on or before Aug.
28, 2006. In addition, the failure to deposit penalty will be waived for
taxpayers in these areas who are unable to make their deposits during this
time period.

The automatic postponement applies to taxpayers in the following Louisiana
parishes: Cameron, Jefferson, Orleans, Plaquemines, St. Bernard, St.
Charles, and St. Tammany.

The postponement also applies automatically to taxpayers in the following
Mississippi counties: Hancock, Harrison and Jackson.

To ensure taxpayers outside the above areas who suffered severe hurricane
damage get necessary relief from filing and payment deadlines, these
taxpayers must identify themselves as impacted. (See attached list of
parishes and counties under “Disaster Areas Eligible for Additional Relief
by Self-Identification.”) These taxpayers should identify themselves by
writing “Hurricane Katrina” in red ink at the top of the return when filing,
or by calling the IRS Disaster hotline at 1-866-562-5227.

Individual, corporation, partnership, estate, trust, S-corporation,
generation-skipping, employment and certain excise tax returns qualify for
the extension.

TECHNICAL DETAILS

Under section 7508A, the IRS is granting affected taxpayers through Aug.
28, 2006, to file most tax returns (including individual, corporate, and
estate and trust income tax returns; partnership returns, S corporation
returns, and trust returns; estate, gift, and generation-skipping transfer
tax returns; and employment and certain excise tax returns), and to make tax
payments, including estimated tax payments, that have either an original or
extended due date falling on or after Aug. 29, 2005 and on or before Aug.
28, 2006.

The IRS also gives affected taxpayers through Aug. 28, 2006, to perform
other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1)
and Rev. Proc. 2005-27, 2005-20 I.R.B. 1050, that are due to be performed on
or after Aug. 29, 2005, and on or before Aug. 28, 2006. This relief includes
the filing of Form 5500 series returns, in the manner described in section 8
of Rev. Proc. 2005-27. The relief described in section 17 of Rev. Proc.
2005-27, pertaining to like-kind exchanges of property, also applies to
certain taxpayers who are not otherwise affected taxpayers and may include
acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information
returns in the W-2, 1098, 1099 or 5498 series, or to Forms 1042-S or 8027.
Penalties for failure to timely file information returns can be waived under
existing reasonable cause procedures. Likewise, the postponement does not
apply to employment and excise tax deposits. The IRS, however, will abate
penalties for failure to make timely employment and excise deposits, due on
or after Aug. 29, 2005, and on or before Aug. 28, 2006, provided the
taxpayer made these deposits by Aug. 28, 2006.

Legal guidance is available in IRS Notice 2006-20.



IRS Designated Disaster Areas for Automatic Extended Relief through Aug. 28,
2006



Louisiana Parishes

Cameron
Jefferson
Orleans
Plaquemines
St. Bernard
St. Charles
St. Tammany

Mississippi Counties

Hancock
Harrison
Jackson







Disaster Areas Eligible for Additional Relief by Self-Identification

Alabama Counties

Baldwin
Choctaw
Clarke
Greene
Hale
Marengo
Mobile
Pickens
Sumter
Tuscaloosa
Washington

Louisiana Parishes

Acadia
Ascension
Assumption
Calcasieu
East Baton Rouge
East Feliciana
Iberia
Iberville
Jefferson Davis
Lafayette
Lafourche
Livingston
Pointe Coupee
St. Helena
St. James
St. John
St. Mary
St. Martin
Tangipahoa
Terrebonne
Vermilion
Washington
West Baton Rouge
West Feliciana

Mississippi Counties

Adams
Amite
Attala
Claiborne
Choctaw
Clarke
Copiah
Covington
Franklin
Forrest
George
Greene
Hinds
Holmes
Humphreys
Jasper
Jefferson
Jefferson Davis
Jones
Kemper
Lamar
Lauderdale
Lawrence
Leake
Lincoln
Lowndes
Madison
Marion
Neshoba
Newton
Noxubee
Oktibbeha
Pearl River
Perry
Pike
Rankin
Scott
Simpson
Smith
Stone
Walthall
Warren
Wayne
Wilkinson
Winston
Yazo

rren
Wayne
Wilkinson
Winston
Yazo