MsFinancialSavvy's Taxes Host

Hurricaine Katrina Victims Get Tax Extensions

Victims of all three Hurricanes Katrina, Rita or Wilma who want to claim disaster- related losses on their prior-year federal income tax returns have until October 16 to make to do so.

The IRS says that taxpayers who experienced losses due to the hurricanes can choose to claim those losses on their current-or prior-year tax returns.

As the IRS explains, the original deadline for choosing this option ordinarily is the due date of the taxpayer's current year return.

Individuals who wish to claim losses on their 2004 return instead of the 2005 tax return will have an extra six months, until October 16, to make the choice. The original deadline for making the choice was April 17.

Taxpayers who already have filed their prior-year return can file an amended return.
Speak to a qualified tax preparer such as an Enrolled Agent or Certified Public Accountant for more information.

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