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Additional Tax Relief Measures Announced by IRS

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The IRS recently announced that it would be offering additional tax relief to victims of Hurricane Irma. The publications were issued in response to the state’s fuel shortage and are also designed to support donation programs across Florida. To learn more about what tax relief you may qualify for, please contact an experienced tax attorney who can assist you.

Donation Programs 

Last week, the IRS approved a special measure that is designed to support leave-based donation programs focused on aiding victims of Hurricane Irma. These programs allow employees to forego vacation, sick, and personal leave in exchange for cash payments provided by employers to charities that offer relief to victims of the disaster. The donated leave will now no longer be included in the income or wages of employees if the payments are made before January 1, 2019.  Employers are also allowed to deduct the payments as business expenses.

The measure is similar to those provided following other major natural disasters, including Hurricane Katrina in 2005, Hurricane Sandy in 2012, and Hurricane Harvey.

Fuel Tax Waiver 

The IRS also announced that no penalties will be imposed on certain uses of adulterated fuels that do not comply with EPA regulations. This tax relief measure was put in place in response to shortages of Ultra Low Sulfur Diesel (ULSD) fuel occurring across the state as a result of Hurricane Irma. The EPA also assured residents that it will not pursue action for the use of around four million gallons of ULSD fuel with a sulfur content that is over 15, but less than 20 parts per million. However, the use of diesel fuel is limited to on-road response vehicles and non-road equipment operated by utility contractors engaged in hurricane response activity. The EPA’s ruling will remain in effect until the four million gallons have been used or September 22nd, whichever comes first.

In accordance with the EPA’s ruling, the IRS has also stated that it will not impose a tax penalty on any person that sells or uses dyed fuel and pays the fuel tax of 24.4 cents per gallon. According to the IRS, the waiver will not apply if the fuel being used doesn’t comply with the EPA’s regulations. As a result, diesel fuel that contains sulfur in an amount that is more than 15 parts-per-million cannot be used in highway vehicles in Florida.

Taxpayers are not required to contact the IRS to obtain relief. However, if you receive a notice of late filing or a late payment penalty with a due date that falls within the postponement period, you should call the number listed on the notice to have the penalty abated.

Call Today to Schedule a One-on-One Consultation with a Dedicated Tax Attorney  

If you live in Florida and have been affected by Hurricane Irma please contact experienced Florida tax attorney Ronald Cutler, P.A. at 386-490-9949 to learn more about whether you or your loved ones qualify for tax relief. Our legal team is eager to assist you today.

Resources:

irs.gov/newsroom/irs-provides-special-relief-to-encourage-leave-based-donation-programs-for-victims-of-hurricane-and-tropical-storm-irma

irs.gov/newsroom/irs-provides-limited-waiver-of-fuel-penalty-due-to-hurricane-irma-response-follows-shortage-of-ultra-low-sulfur-diesel