IRS News Release  
April 08, 1997

IRS Grants Tax Relief to
Midwest Flood Victims

WASHINGTON - The Internal Revenue Service is granting some tax relief to taxpayers in counties that have been declared disaster areas due to floods this month. This includes all of North Dakota and South Dakota. This same relief will apply in any additional counties in other states that are declared disasters because of these floods.

Taxpayers whose returns are due April 15 will not face late filing or late payment penalties if they file and pay by May 30, 1997. By law, interest must be charged from the original due date until the tax is paid.

Taxpayers who have an estimated tax installment due April 15 will not be penalized if that payment is made by May 30, 1997.

Although the IRS cannot extend the deadline for employment or excise tax deposits, it will abate penalties on tax deposits due during April if the undeposited taxes are deposited no later than April 30, 1997.

In addition to the relief above, the IRS will suspend examination and collection activities through May 15 for all adversely affected taxpayers within the disaster areas.

Taxpayers may claim uninsured casualty losses on either their 1996 tax returns or their 1997 forms next year. IRS representatives will be at any scheduled FEMA Recovery Centers, to help taxpayers with returns.

Affected taxpayers should put the words "'97 FLOODS" or similar language at the top of any return relying on flood-related relief.

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