Katrina Relief Workers Have
Until Jan. 3 to File and Pay Taxes
IRS and Tax NEWS
Courtesy of IRS
IR-2005-103 September 14, 2005
WASHINGTON — Hurricane Katrina relief workers have until Jan.
3, 2006 to file any returns and pay any taxes due, according to the Internal
Revenue Service.
In general, this means that relief workers are entitled to the same
extensions that apply to individuals and businesses located in the disaster
area. Eligible relief workers should notify the IRS that they are affected
by Katrina when they file returns or respond to notices or contacts from
the tax agency.
Eligible relief workers are those assisting in the disaster area. This
includes people affiliated with recognized government or philanthropic
organizations and others.
Relief workers can get the extensions by marking the top of appropriate
forms with "Hurricane Katrina" written in red ink. They can also alert
the IRS by calling the toll-free disaster hotline at 1-866-562-5227.
[TaxMama note: This was the funniest thing! I was just talking to the
Press Liaison at the Treasury Department asking if there would be any
legislation offering concessions to the volunteers and relief workers,
when this notice came from IRS! Now, they've started reading my mind.]
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Retirement Plans Can Make Loans, Hardship Distributions
to Katrina
Victims
IR-2005-105 September 15, 2005
WASHINGTON – 401(k) s and similar employer-sponsored retirement
plans can make loans and hardship distributions to victims of Hurricane
Katrina and members of their families, the Internal Revenue Service announced
today.
For the first time ever, the IRS and the Departments of the Treasury
and Labor are providing broad-based relief to retirement plan participants
affected by a major disaster.
401(k) plan participants, employees of public schools and tax-exempt
organizations with 403(b) tax-sheltered annuities, and state and local
government employees with certain 457 deferred-compensation plans may
be eligible to take advantage of these streamlined loan procedures and
liberalized hardship distribution rules. Though IRA participants are
barred from taking out loans, they may be eligible to receive distributions
under liberalized procedures.
Retirement plans can provide this relief to employees and certain members
of their families who live or work in the disaster area. To qualify for
this relief, hardship withdrawals must be made by March 31, 2006.
For more details, please read this
PDF.
MILEAGE RATE INCREASE
Rates will increase for the period
September 1, 2005 through December
31, 2005.
| Standard Mileage Rates |
| |
Jan 1-Aug. 31,2005 |
Sept 1-Dec. 31, 2005 |
| Business |
$0.405 per mile |
$0.485 per mile |
| Medical |
$0.15 |
$0.22 |
| Moving |
$0.15 |
$0.22 |
| Charity |
$0.14 |
$0.14 |
