The Impact of Hurricane Katrina, Extensive Tax Law Changes

Hurricane Katrina was different from the other disasters we have recently endured. She devastated a vast area of the country, and the affected population has spread throughout the U.S. Due to the phenomenal effects of this storm, the IRS has allowed for many provisions that tax preparers throughout the nation should be aware of. In addition to the tax law changes designed for those directly affected by Katrina, there are also additional exemptions and tax breaks for people that care for these victims. It is likely that even if you are outside the storm-ravaged states you will need to be familiar with these tax law changes.

The next few articles contain a synopsis of tax law changes you need to know when preparing a return for a Katrina victim or for those people that have helped them. As of press date, not all laws have been written. Some areas may still require additional guidance. The IRS has done an excellent job of publishing information on Katrina, and we encourage you visit their website, www.irs.gov, for the latest information. Your state’s website may also be a good resource for any state-specific Katrina-related changes.

From December 2005

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