Tornado victims may be eligible for special benefits from IRS [The North Jefferson News, Gardendale, Ala.]

Nov. 29--The Internal Revenue Service is reminding those affected by the April tornadoes in Alabama that they may be eligible for special tax benefits, including filing an immediate claim for a refund due to storm losses.

Here are some common questions and answers about IRS disaster tax relief:

1. Who is considered eligible for IRS disaster tax relief? Generally, at the time of the storms, if you lived in, owned a business in, or had necessary tax records stored in a county that was federally declared, you are considered by the IRS to be affected and eligible for tax relief.

2. What should I write on my correspondence with the IRS to be sure it's processed quickly and correctly? To receive expedited service from the IRS, affected taxpayers must put the disaster designation, "Alabama/

Severe Storms, Tornadoes, Straight-Line Winds and Flooding," at the top of any tax return or disaster-related correspondence.

3. Does a disaster declaration make it easier to claim damage losses on your tax return? Yes, taxpayers in declared counties have the option of claiming a casualty loss right now by amending their 2010 tax return instead of having to wait until next year and claim it on their 2011 return. The option of claiming the storm losses on your 2010 return expires after April 16, 2012.

4. Since I lost all my tax records in the storms, can I get a copy of my 2010 tax return from the IRS? Yes. Affected taxpayers can get expedited copies of prior year tax returns at no cost. Fill out and file IRS Form 4506 and write the disaster designation across the top to get the fee waived.

5. Is it better to amend my 2010 tax return and claim a casualty loss now or to claim it on my 2011 return when I file next year? Amending your 2010 return now can be beneficial because it may help you get a tax refund sooner. For some, it may be more advantageous to claim it on their 2011 return.

6. What is a casualty loss claim and how do you calculate it? A casualty loss can be claimed for damage or loss of property due to storms, tornadoes, floods, fires or even theft. It requires some calculating, but in simple terms, a casualty loss is the difference between the value of your property right before the disaster and right after it, less any damage reimbursements. Visit our website, www.IRS.gov, for more information, or call the IRS Disaster Hotline toll-free at (866) 562-5227.

7. What types of receipts and documents are needed to file a casualty loss claim? Pictures of the property before the storms and after them are always helpful to document the damage. Also, be sure to keep receipts from repairs and rebuilding of your property as they are helpful in calculating the casualty loss. Iif you replace heating and air systems and other energy-related items, you may be eligible for a tax credit for those when you file your 2011 taxes next year.

8. Who can benefit most from claiming a casualty loss? Before you claim a casualty loss, you have to deduct any damage reimbursements from insurance and other sources. So, people who had little or no insurance coverage at the time of the disaster and who got no other reimbursements usually benefit the most from claiming a casualty loss.

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