California Wildfire Tax Relief

Today TaxMama hears from Teri in California with this question. “Do you know if there is authority for relief from the 10% penalty on early distribution of IRAs due to the California wildfires?”

TaxMama answers a question on Tax

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Hi Teri,

That’s a good question.

I could have sworn I saw a press release about that earlier this month. It’s not up on the IRS site now.

This is all they are showing for Los Angeles to Santa Barbara and Inland Counties – 2003-2007 fires.
http://www.irs.gov/newsroom/article/0,,id=99114,00.html

Doing several searches, I cannot find a thing. Not even on the White House site
http://www.whitehouse.gov/search/?keywords=wildfire&F_All=Y

California FTB is showing the 2008 relief
http://www.ftb.ca.gov/professionals/taxnews/2008/1208/1208_2.shtml

There is apt to be relief. But I don’t see it yet. I have asked IRS to look into this to find out when they expect to see a Presidential declaration to grant relief.

And remember, you can find answers to all kinds of questions about disaster relief and other tax issues, free. Where? Where else? At TaxMama.com.

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