CHICAGO, Dec. 9, 2011 /PRNewswire-USNewswire/ — It’s the season for making a list and checking it twice, but a holiday to-do list isn’t the only one you should be working on before the year ends. Be your own Santa and write up a list of money moves you can make now that will be a gift to yourself come tax time. Take a look at these year-end tax tips from the Illinois CPA Society to see what works best for your financial situation.

Make Charitable Donations – You can deduct donations on your 2011 return if you itemize your tax return. Keep good records. Monetary gifts, the value of materials or food donations, and even the out of pocket expenses you incur while volunteering, such as gas and travel costs, can all be deducted. You can also deduct the fair value of any clothing or household items in good condition that you donate. If you are donating inherited items or furniture, an appraisal may be helpful to determine value. With any donations, make sure to get receipts for documentation.

Consider Energy Saving Home Improvements – If you were planning on replacing that old furnace anyway, you could save up to $150 with a qualified energy efficient unit if you do it by the end of the year. Insulation, new windows and doors, solar heaters and other items are also covered under The Nonbusiness Energy Property Credit and the Residential Energy Efficient Property Credit. Details can be found at www.IRS.gov.

Pay Bills Early – Paying certain bills in 2011 will allow you to write off a deduction earlier. For example, if you pay your January 2012 mortgage bill on or before December 31, you may deduct an extra month of interest in 2011.

Contribute to Your Retirement Plans – A contribution to your 401(k) plan is pre-tax money excluded from your income so it lowers your tax bill. It’s a good idea to contribute as much as possible to reduce the taxes you pay and to stay ahead of any possible tax reforms that may limit future contributions. For 2011, you can contribute up to $16,500 to a 401(k) plan (or $22,000 if you 50 or older).

Look Into Expiring Tax Breaks – There are several tax breaks that expire at the end of 2011 and you want to be sure you’ve made the related expense within the calendar year. These include the classroom expense deduction which allows teachers to deduct up to $250 for books, supplies and other related expenses, and a tuition deduction where up to $4,000 in tuition can be deducted. Amounts paid in 2011 for classes starting in early 2012 can qualify for a deduction on your 2011 tax return. These breaks may be reinstated, but it’s best to act now.

Working with a CPA throughout the year will keep you well-prepared to get the best return on your taxes. If you’re looking for a CPA to help you file your 2011 state and federal tax returns, use the Find a CPA directory which can be found on the Illinois CPA Society site’s homepage, www.icpas.org.

Prepaid Card Will Give New York Taxpayers a Convenient and Secure Refund Alternative to Paper Checks

by New York State Department of Taxation and Finance

ALBANY, NY (12/02/2011)(readMedia)– The New York State Department of Taxation and Finance today announced a new option taxpayers can choose to receive their State income tax refunds. Beginning next year, a prepaid card will be available as an alternative to paper checks.

The cards will be available at no cost to taxpayers, and no bank account or credit check is required to enroll. Taxpayers who choose to receive the cards can use them to conveniently and securely pay bills and make purchases online, by telephone, and at retail locations. In addition, taxpayers – including those without bank accounts – can make in-person cash withdrawals at most banks. The first cash withdrawal at a bank is free and can be used to withdraw the entire balance.

“Expanding our tax refund options to include this new prepaid card empowers New York taxpayers with a more convenient, and secure alternative to paper checks,” said New York State Taxation and Finance Commissioner Thomas H. Mattox. “The new prepaid card may be especially beneficial to taxpayers who don’t have bank accounts.”

The new prepaid card will be ready to use after being activated by the cardholder, providing taxpayers with immediate access to their New York state tax refund. In addition to ATMs, cardholders can get cash back at the point-of-sale (with PIN transactions) at most retail locations. If a card is lost or stolen, it will be replaced at no charge. Cardholders are also protected against any unauthorized or fraudulent charges.

Taxpayers will continue to have the refund options of direct deposit or paper checks.

Nov. 29, 2011, 4:08 p.m. EST
NEW YORK, Nov 29, 2011 (BUSINESS WIRE) — Fitch Ratings assigns an ‘AA-’ rating to the following Suffolk County, NY (the County) refunding serial bonds:

–$73,145,000 2011 series A;

–$17,475,000 2011 series B.

The bonds are expected to sell via negotiated sale on Dec. 7, 2011.

In addition, Fitch affirms the following ratings:

–Outstanding general obligation public improvement bonds at ‘AA-’;

–Outstanding tax anticipation notes at ‘F1+’.

The Rating Outlook is revised to Negative.

SECURITY

The bonds are general obligations of Suffolk County with a pledge of the faith and credit of the county for the payment of debt service. Unless paid from other sources, the bonds are payable from ad valorem taxes that may be levied upon all taxable real property within the county, subject to certain statutory limitations.

KEY RATING DRIVERS

WEAKENING FINANCIAL FLEXIBILITY: The county’s overall financial flexibility and cushion have weakened, reflected in a significantly lower general fund balance and a reduction in the tax stabilization reserve fund (TSRF), increasing the credit risk associated with the county’s high reliance on economically sensitive sales tax revenue.

HIGH RELIANCE ON SALES TAX REVENUES: Historically, the county’s projections of sales tax revenues, the largest general fund revenue component, have been aggressive and Fitch believes the county remains vulnerable to shortfalls in this economically sensitive revenue source.

INCREASING FIXED COSTS: While management has historically demonstrated a willingness and ability to reign in expenditure growth and address long-term budget stability, rising fixed expenditures related to employee benefits will continue to challenge the county’s ability to achieve budgetary balance and restore adequate reserve levels in the near term.

FAVORABLE SOCIOECONOMIC INDICATORS: The county benefits from a diverse and stable economy with strong economic indicators including unemployment rates that remain well below state and national averages, a growing population and high wealth levels. Additionally, economic development and expansion projects have continued at a strong pace despite recessionary pressures.

LOW DEBT BURDEN: Debt ratios are low and should remain so given continued projected growth in the tax base, manageable future capital needs and above-average debt amortization.

WHAT COULD TRIGGER A RATING ACTION

FURTHER DETERIORATION OF RESERVES: The county’s inability to stabilize financial operations and prevent a further decline in reserves beyond current expectations will be vital to maintaining the existing rating level.

INABILITY TO RESTORE STRUCTUAL BALANCE: The county’s inability to restore structural balance through reliable and recurring revenue sources and lower expenditures, including the implementation of the 2012 budget reductions, will have a negative impact on the county’s credit profile and may lead to a rating downgrade.

CREDIT PROFILE

DIVERSE EMPLOYMENT BASE

Encompassing the eastern two-thirds of Long Island, the county benefits from its proximity to New York City, as well as its own broad employment base and positive socioeconomic indicators. As of the 2010 Census, the county’s population totaled 1.5 million, an increase of 5.2% since 2000. The economy is stable and diverse and home to numerous corporate and regional headquarters. Unemployment rates have historically been below state and national levels. In September 2011 the county recorded an unemployment rate of 7.0%, compared to state and national rates of 7.8% and 8.8%, respectively. Despite the recession, economic development has continued at a relatively strong pace, with several major development and expansion projects in various stages of completion.

LARGE STABLE TAX BASE BENEFITS FROM AFFLUENT POPULATION

The county’s tax base has grown significantly since the beginning of the decade and continues to grow, albeit at a slower rate of 2.6% in 2010. The tax base is diverse with the top 10 taxpayers comprising a small 5% of market value. Total property tax collections in 2010 remained strong and in line with prior year collection rates at about 99%. The county is affluent, with median household income and per capita income well above state and national averages.

DETERIORATING FINANCIAL POSITION

In 2010, the county’s financial position continued to deteriorate as the county used reserves to offset lower than budgeted revenues. Despite a 8.2% increase in general fund sales and use tax revenues and continued expenditure reductions, the county’s high and growing fixed costs and reliance on nonrecurring revenue sources have weakened its financial cushion. On a GAAP basis, the unreserved general fund balance totaled a negative $150 million, or negative 6.7% of spending. When the TSRF balance of $89 million is added, results improved to a negative 2.7% of spending. In 2010, the TSRF was drawn by $9.6 million to offset costs associated with a retirement incentive program. The TSRF balance has decreased from $127 million in 2008.

The negative fund balance position is mitigated to some extent by the impact of GASB 48, which requires the county to defer the approximately $206 million in proceeds received in 2008 from its tobacco settlement. If the county had not been obligated to comply with GASB 48, 2010 unreserved fund balance would have been $39 million or 1.7% of spending before consideration of the TSRF.

CONTINUED USE OF TSRF IN 2011

For 2011 the county projects an operating shortfall of $69.5 million as a result of lower property taxes, the postponement of the sale of the county nursing home, the state’s non-approval of additional red light cameras, increased pension costs, and higher social service and snow removal expenses. Additionally, while sales tax revenues are up 2.5% through October versus 2010, the county will need over 4% growth for the rest of the year to make budget.

There are no property tax increases, furlough days, or layoff in the current budget. Rather, the county’s steps to offset the 2011 shortfall include cutting countywide expenses by 10% in February 2011, reducing contracts related to healthcare centers to offset state reductions, delaying hiring the new police class, and continued adherence to a strict hiring policy. In addition, the county budgeted the use of non-recurring revenues including a $39 million transfer from the TSRF.

2012 BUDGET INCLUDES RECURRING REVENUES AND REDUCED EXPENDITURES

The county’s 2012 budget includes recurring revenues from increased taxes and county fees and expenditure savings from the consolidation of healthcare operations and service cuts, charge back of out of county community college tuition to the towns, consolidation of county departments and the elimination of 88 non essential positions. On a non-recurring basis, the county will amortize $45 million of the 2011 pension payment due in February 2012, lowering the payment but increasing future years’ costs. A transfer of $10.6 million from the TSRF to the Retirement Contribution Reserve Fund will be used to pay state retirement costs, something Fitch views as weaker than funding through operations. The TSRF balance is projected to remain stable at $50 million at the end of 2012.

COUNTY EXECUTIVE BUDGET VS. LEGISLATURE BUDGET

The budget adopted by the legislature differs from the county executive’s recommended budget primarily in the areas of the timing of 464 county layoffs and the plans for the county owned John J. Foley Skilled Nursing Facility. The county executive proposed county layoffs and the closing of the nursing home as early as the end of 2011; the legislative budget will extend the timing of these two items by six months.

Since there has not been forward progress in terms of negotiating healthcare concessions with the bargaining units, the additional six months will allow time for the new county executive, elected in November 2011, to negotiate and formalize an agreement to avoid the layoffs. If there are no union concessions within the six month timeframe layoffs will commence.

The county executive projected the nursing facility would be closed by Dec. 31, 2011, with the license expected to sell for $2.5 million and the building and equipment for approximately $30 million. The six month extension will give the legislature time for due diligence and cost analysis of the several RFPs that were recently received and also consider a public/private partnership.

The funding for the six month extension will be provided by recurring revenues of $18 million (increase in taxes of $12.4 million and increase in various county fees) and expenditure cuts of $8.1 million (consolidation of departments and functions and abolishment of 88 non-essential positions). Fitch views these recurring solutions as a credit positive.

The adopted budget also includes additional revenues from the securitization of 25% of the remaining tobacco revenues of which $17.1 million will be used to defease general fund debt service in 2012.

REDUCED FINANCIAL FLEXIBILITY

While Fitch expects the county to continue to reduce expenditures, financial flexibility has been significantly reduced as a result of the use of TSRF reserves. Fitch believes the county will remain vulnerable to volatility in sales tax receipts. Historically, the county has over budgeted sales tax revenues; the 2012 budget includes revenues of $1.2 billion from sales tax, a $46.3 million or almost 4% increase over 2011 estimates. Fitch considers the county’s ability to restore structural balance through recurring revenues and/or expenditure reductions and prevent a further decline in the balance of either the general fund or the TSRF to be essential to maintaining the rating at the current level.

LOW DEBT LEVELS

The county’s overall debt burden is low at 1.9% of market value (although moderate when measured against population at $3,444) and should remain low given the county’s growing tax base, manageable capital needs, and above-average principal amortization. Debt service represents a manageable 5.8% of general fund spending. In December 2011 and January 2012, the county plans to issue an aggregate $400 million in tax anticipation notes (TANs) in anticipation of the receipt of real property taxes levied for fiscal 2012. Short-term borrowing is in line with historical norms. Total TAN borrowing represents a high 29% of total general fund revenues.

In addition, in spring 2012, the county anticipates issuing approximately $33 million of serial bonds for general capital purposes and $17 million in sewer bonds. The three-year capital improvement program (CIP) 2012 – 2014 totals $418 million, down $155 million from the prior CIP. Debt amortization is above average with 64% of principal retired within 10 years.

INCREASING PENSION OBLIGATIONS

The county’s annual required contribution to the state’s retirement system increased significantly in 2010, totaling $136 million or 6.6% of total expenditures, up from $94.4 million, or 4.8% in 2009.

As of Dec. 31, 2010, the unfunded actuarial accrued liability for other post employment benefits (OPEB) was $3.9 billion, or a modest 1.4% of market value. This amount is expected to increase, as the county plans to continue to fund its OPEB liability on a pay-go basis.

CURRENT BOND ISSUE

The series 2011 A and B refunding bonds are being issued to refund all or a portion of outstanding principal on the county’s public improvement bonds 2001 series A, 2002 series A, 2002 series A refunding, 2002 series B, 2003 series A, 2003 series B, and 2004 series A, and will result in a present value of savings to the county of approximately $3 million in 2012.

Additional information is available at ‘ www.fitchratings.com ‘. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

In addition to the sources of information identified in the Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, Zillow.com and, National Association of Realtors.

Applicable Criteria and Related Research:

–’Tax-Supported Rating Criteria’ (Aug. 15, 2011);

–’U.S. Local Government Tax-Supported Rating Criteria’ (Aug. 15, 2011).

Applicable Criteria and Related Research:

Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648898

U.S. Local Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648842

Affected Taxpayers, Tax Preparers and Relief Workers In 13 Counties Declared Disaster Emergencies Among Those Provided Extra Time To Pay and File Taxes

by New York State Department of Taxation and Finance

ALBANY, NY (10/31/2011)(readMedia)– The New York State Department of Taxation and Finance announced the extension of certain tax filing and payment deadlines for affected taxpayers, tax preparers and relief workers in counties that were declared disaster emergencies by Governor Andrew M. Cuomo.

The deadlines for most filings and certain tax payments that were due on or after October 29, 2011 have been extended to November 16, 2011. The extension includes quarterly Withholding Tax returns, the Metropolitan Commuter Transportation Mobility Tax (MCTMT) returns, and Highway Use Tax returns all of which were due on October 31, 2011. There are no extensions for Withholding Tax payments made using forms NYS-1 or the PrompTax system. There are also no extensions for MCTMT payments made through the PrompTax system.

Eligible counties are as follows: Albany, Columbia, Delaware, Dutchess, Greene, Orange, Putnam, Rensselaer, Richmond, Rockland, Sullivan, Ulster and Westchester.

“I hope this extension will provide some measure of relief to taxpayers experiencing hardship as a consequence of the extreme weather,” said Commissioner Thomas H. Mattox. “We recognize that some taxpayers and business owners may be experiencing power outages or other obstacles that prevent them from timely filing returns.”

For more information, taxpayers and tax preparers should visit <www.tax.ny.gov>. Phone calls may be directed as follows:

Forms and Instructions: 518.457.5431

Withholding Tax: 518.485.6654

Miscellaneous Business Tax: 518.457.5735

Oct 18, 2011 15:51 ET

Includes Essays by, and Interviews With, Key Players Who Helped Create the 1986 Tax Reform Act

FALLS CHURCH, Va., Oct. 18, 2011 /PRNewswire-USNewswire/ — Tax reform requires presidential leadership, an empowered Treasury secretary, enthusiastic chairs of congressional taxwriting committees, and a “zealot” to push it, former Sen. Bill Bradley told Tax Notes for its special issue this week to mark the 25th anniversary of the last major reform.

Also vital is a shared agreement on “what you mean by tax reform,” said Bradley, the self-described zealot of 1986 who pushed relentlessly for what became that year’s landmark Tax Reform Act. Policymakers need to decide whether tax reform will be “revenue neutral,” as the 1986 act was, or whether it will be part of an effort to raise revenues for deficit reduction.

“Do you mean closing loopholes only?” he asked. “Or do you mean closing loopholes to lower rates with all the money going to lower rates? Or do you mean closing loopholes and using only some of the revenue to reduce rates?”

Commemorating the anniversary of tax reform, this week’s Tax Notes includes commentary from the magazine’s own contributing editors Lee Sheppard and Joseph J. Thorndike, as well as essays from such leading tax experts as Martin Feldstein, Michael J. Graetz, Kenneth J. Kies, C. Eugene Steuerle, Bruce Bartlett, Robert S. McIntyre, and Donald B. Susswein. Several of them played key roles – at the Treasury Department, on Capitol Hill, and elsewhere – in the 1986 legislation.

To read the interview with Bradley and to learn more about Tax Analysts, visit the Tax Analysts website at www.taxanalysts.com.

Oct 12, 2011 15:12 ET

ATLANTA, Oct. 12, 2011 /PRNewswire-USNewswire/ — The U.S. Small Business Administration announces today that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of all sizes located in Columbia, Dutchess and Rensselaer counties in New York as a result of excessive rain and high winds associated with Tropical Storm Irene that occurred on Aug 28 – 31, 2011.

“These counties are eligible because they are contiguous to one or more primary counties in Massachusetts . The Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included,” said Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to assist eligible entities affected by the same disaster,” said Skaggs.

Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. With the exception of aquacultural enterprises, agricultural producers, farmers and ranchers are not eligible to apply to SBA.

Loan amounts can be up to $2 million, with interest rates of 3 percent for non-profit organizations and 4 percent for small businesses. Terms can be up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. The agency sets loan amounts and terms based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.

Disaster loan information and application forms may be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov. Loan applications can be downloaded from the SBA’s website at www.sba.gov. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Those affected by the disaster may also apply for disaster loans electronically from SBA’s website at https://disasterloan.sba.gov/ela/.

Completed loan applications must be returned to SBA no later than May 22, 2012.

For more information about the SBA’s Disaster Loan Program, visit our website at www.sba.gov .

Array of Web Services Assist Businesses, Boost Government Efficiency, Save Taxpayer Dollars

by New York State Department of Taxation and Finance

ALBANY, NY (10/07/2011)(readMedia)– The New York Department of Taxation and Finance announced today that a record number of businesses have moved to the Web for all aspects of filing state taxes. By creating online service accounts, these users drove the Tax Department past a milestone of more than one million online account holders. More than half of these accounts-519,000 and growing-are for businesses. That’s triple the number of business account holders as compared with just one year ago.

“We’ll continue to enhance our online services so that business operators can focus on running and growing their businesses,” said Commissioner Thomas H. Mattox. “This will ease their administrative tasks and, at the same time, save New York State and its taxpayers millions of dollars through paperless processing and streamlined administration.”

Everyone from small shop owners to major corporations can file virtually all of their returns online. For the sales tax quarter ending September 20, 72% of returns were filed online, more than doubling last year’s rate of 31%. Over the past year:

• Web-filed withholding tax returns increased more than 230%.

• Web-filed corporation tax returns increased more than 75%.

• Business e-filing saved New York taxpayers $8.2 million in processing costs.

Taxpayers are quickly discovering the appeal, efficiency, and security of completing their tasks online. Online account users can:

• schedule payments directly from their bank accounts

• grant various levels of access to different tax professionals

• obtain Certificates of Authority to conduct business

• view a summary of their tax account and past tax filings

• respond to important notices and correct returns

• sign up for email notifications

Online filing also dramatically reduces errors associated with paper returns. To learn more about the online services, and view videos and online demonstrations, visit the New York Tax Department’s Online Services Web page at www.tax.ny.gov/online

Array of Web Services Assist Businesses, Boost Government Efficiency, Save Taxpayer Dollars

by New York State Department of Taxation and Finance

ALBANY, NY (10/07/2011)(readMedia)– The New York Department of Taxation and Finance announced today that a record number of businesses have moved to the Web for all aspects of filing state taxes. By creating online service accounts, these users drove the Tax Department past a milestone of more than one million online account holders. More than half of these accounts-519,000 and growing-are for businesses. That’s triple the number of business account holders as compared with just one year ago.

“We’ll continue to enhance our online services so that business operators can focus on running and growing their businesses,” said Commissioner Thomas H. Mattox. “This will ease their administrative tasks and, at the same time, save New York State and its taxpayers millions of dollars through paperless processing and streamlined administration.”

Everyone from small shop owners to major corporations can file virtually all of their returns online. For the sales tax quarter ending September 20, 72% of returns were filed online, more than doubling last year’s rate of 31%. Over the past year:

• Web-filed withholding tax returns increased more than 230%.

• Web-filed corporation tax returns increased more than 75%.

• Business e-filing saved New York taxpayers $8.2 million in processing costs.

Taxpayers are quickly discovering the appeal, efficiency, and security of completing their tasks online. Online account users can:

• schedule payments directly from their bank accounts

• grant various levels of access to different tax professionals

• obtain Certificates of Authority to conduct business

• view a summary of their tax account and past tax filings

• respond to important notices and correct returns

• sign up for email notifications

Online filing also dramatically reduces errors associated with paper returns. To learn more about the online services, and view videos and online demonstrations, visit the New York Tax Department’s Online Services Web page at www.tax.ny.gov/online

Array of Web Services Assist Businesses, Boost Government Efficiency, Save Taxpayer Dollars

by New York State Department of Taxation and Finance

ALBANY, NY (10/07/2011)(readMedia)– The New York Department of Taxation and Finance announced today that a record number of businesses have moved to the Web for all aspects of filing state taxes. By creating online service accounts, these users drove the Tax Department past a milestone of more than one million online account holders. More than half of these accounts-519,000 and growing-are for businesses. That’s triple the number of business account holders as compared with just one year ago.

“We’ll continue to enhance our online services so that business operators can focus on running and growing their businesses,” said Commissioner Thomas H. Mattox. “This will ease their administrative tasks and, at the same time, save New York State and its taxpayers millions of dollars through paperless processing and streamlined administration.”

Everyone from small shop owners to major corporations can file virtually all of their returns online. For the sales tax quarter ending September 20, 72% of returns were filed online, more than doubling last year’s rate of 31%. Over the past year:

• Web-filed withholding tax returns increased more than 230%.

• Web-filed corporation tax returns increased more than 75%.

• Business e-filing saved New York taxpayers $8.2 million in processing costs.

Taxpayers are quickly discovering the appeal, efficiency, and security of completing their tasks online. Online account users can:

• schedule payments directly from their bank accounts

• grant various levels of access to different tax professionals

• obtain Certificates of Authority to conduct business

• view a summary of their tax account and past tax filings

• respond to important notices and correct returns

• sign up for email notifications

Online filing also dramatically reduces errors associated with paper returns. To learn more about the online services, and view videos and online demonstrations, visit the New York Tax Department’s Online Services Web page at www.tax.ny.gov/online

Sep 29, 2011 17:00 ET

PARSIPPANY, N.J., Sept. 29, 2011 /PRNewswire/ — Disasters – such as hurricanes, floods and wildfires – can strike at any time, and the best defense is planning ahead and being prepared. To arm taxpayers with what they need to know, Jackson Hewitt Tax Service® has developed a free online Disaster Relief Kit, available at www.jacksonhewitt.com.

The kit features valuable information on critical topics concerning what to do in a disaster situation. Included is a home inventory guide, tax specific tips on claiming casualty and theft losses, and guidelines for replacing identification and documents.

“If you have suffered property losses from a disaster, such as a fire, hurricane, tornado or flood, you may be able to take related deductions on your next tax return,” said Mark A. Steber, chief tax officer, Jackson Hewitt Tax Service Inc. “Understanding the proactive steps you can take now, such as completing an inventory of your home and possessions, is just one way to be prepared. Many of these steps are simple, yet they can become quite significant if a disaster strikes.”

Steber shares the following tips for taxpayers to be aware of when a natural disaster strikes:
Know How “Casualty” is Defined: A casualty is the damage, destruction or loss of property resulting from an identifiable event that is sudden, unexpected or unusual. It does not include damage from routine wear and tear (such as termite infestation or gradual mold damage).

Know What’s Not Covered: Several costs related to a disaster are not considered deductible losses, such as the cost of repairing damaged property, restoring landscaping to its original condition or cleaning up after a casualty. However, if these repairs meet certain conditions, you may be able to use these costs as a measure of the decrease in fair market value of your property.

Documentation is Key: As a general rule, you should always keep any documentation to support the basis or fair market value of your property separate from your property. Scan copies and keep either in a document storage location online, such as Jackson Hewitt’s MyTaxManager, or on a backup drive. Make sure you keep copies of the backup drive with a family member, a friend, or in your safe deposit box, to prevent loss of these documents when your property is damaged, destroyed or stolen.

Be Aware of Federally Declared Disasters: Additional tax relief may be available if an area is declared a federal disaster area. The Federal Emergency Management Agency (FEMA) reports that last year there were 81 federally declared disasters, with 85 so far in 2011*.

Options for Filing a Claim: Personal casualty losses are reported on Form 4684, Casualties and Thefts, Section A and entered on Schedule A. You must be able to itemize deductions on your federal return to be able to claim your loss. If your property is covered by insurance, you should file a timely insurance claim for reimbursement of the loss.

Know Your Deadlines: The IRS may postpone certain tax deadlines of taxpayers who are affected by a federally declared disaster for up to one year. These deadlines may include filing income, excise and employment tax returns, paying taxes associated with those returns, and making contributions to a traditional IRA or Roth IRA. The IRS typically publishes announcements about postponed tax deadlines online at www.irs.gov.

Know Where to Go for Help: In addition to its online Disaster Relief Kit, Jackson Hewitt has offices open around the country throughout the year to assist taxpayers with questions surrounding casualty losses.

“Each situation is unique, and there are a variety of rules that may apply,” said Steber. “Speaking with a local tax preparer about your situation can help you file properly and get reimbursed for applicable costs sooner.”

* http://www.fema.gov/news/disaster_totals_annual.fema