Cash Now for Flood Victims From IRS
(Bloomfield Hills, MI) October 1, 2014 — The IRS may be the fastest, easiest way for flood victims to get much needed cash. Taxpayers who already filed their 2013 returns are now eligible to apply for a casualty loss tax refund if they have unreimbursed losses from the August floods. Oakland, Wayne and Macomb county residents are eligible because all three counties have been declared Federal Disaster areas after last year’s floods.
John Starnes, Partner at People’s Tax Center, says, “Amazingly, the IRS is often the fastest avenue for putting money in flood victim’s pockets following a Federal Disaster. The IRS actually prioritizes the processing of refunds with amended returns for disaster victims. The money is typically paid within weeks rather than months.”
The August 11-13 flooding left many uninsured people and businesses with once in a lifetime losses. Disaster victims without flood insurance who suffered with sewage backups, damaged automobiles, ruined furniture, walls, carpets and flooring are eligible for a special tax refund. The Tax Code allows taxpayers to amend the prior year’s tax return and claim the casualty loss. The process sometimes results in a refund in the thousands, or tens of thousands of dollars. The amount of the refund can be as great as the taxes withheld and paid in 2013. The taxpayer can actually choose whether to apply this loss to their 2013 or a 2014 tax return. Claiming the loss against the 2013 taxes paid will get the IRS to pay you a refund now, rather than next April.
Because most people rarely suffer Federal Disaster losses, understanding how to amend 2013 taxes and filing the correct forms is more complex than the average person should attempt on their own. This would be a good time to reach out to a licensed tax professional. Starnes says “Many people need the money right now. But they may not realize how to pursue what the law says they deserve.” Starnes recommends calling a People’s Tax Center, (248) 434-3985 to help determine whether getting the casualty loss money today or in 2015 would be best.
“Every individual, family or business owner needs help making the right tax decision that fits their financial situation.” says Starnes.
Working people or retirees, who had income taxes withheld from their paychecks in 2013, can qualify for an expedited refund that will reimburse the taxpayer for home, car, or business losses not covered by insurance.