IRS Grants Tax Relief
to Hurricane Fran Victims

WASHINGTON - The Internal Revenue Service is granting some relief to taxpayers who may be unable to meet their federal tax obligations in places that are declared disaster areas due to Hurricane Fran and its aftermath.

Affected taxpayers whose estimated tax payments are due on September 15 must pay by September 30, 1996, to avoid penalties. Taxpayers with corporate, partnership or fiduciary returns due September 15 must file by September 30.

Although the IRS cannot extend the deadline for employment or excise tax deposits, it will abate penalties on tax deposits required to be made during or for the period of September 4-15 if the deposits are made by September 30. Interest charges will still apply to payments made after the original due date.

In addition, until October 15, 1996, the IRS will suspend many enforcement activities -- such as levies, seizures and summonses -- for taxpayers within the disaster areas. Taxpayers in disaster areas may claim uninsured casualty losses on either amended 1995 tax returns or their 1996 forms next year. IRS representatives will be at FEMA Recovery Centers to help taxpayers with returns or to expedite requests for tax account transcripts needed for disaster-related loans.

Affected taxpayers should put "HURRICANE FRAN" or similar words at the top of any return relying on this relief.

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