New Regulations on Disaster-Related Tax Deadlines Made at AICPA's Urging.Thanks to the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). Tax Division Disaster Regulation Task Force that worked with the Internal Revenue Service, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. expanded the list of tax-related deadlines that may be postponed to include deadlines for contributions to IRAs and pension plans and for rollover A graphic element in an application or on a Web page that changes its color or shape when the pointer is moved (rolled) over it. See JavaScript rollover. See also n-key rollover. contributions for individuals affected by a Presidentially declared disaster or serving in a combat zone. Although the IRS declined to generally postpone tax deposit deadlines, it indicated that it would consider reasonable-cause requests from disaster-afflicted businesses to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such section 6656 deposit penalties on a case-by-case basis. In addition, the new regulation expands the acts for which disaster relief is available to include (1) filing generation-skipping transfer tax Example: Property is placed in a trust for the donor's child and grandchildren. The income may be "sprinkled" among the child and grandchildren in accordance with their needs and the principal of the trust will be distributed outright to the grandchildren following the child's death. returns; (2) paying the generation-skipping transfer tax; and (3) filing Tax Court petitions. The final regulations also clarify that "affected taxpayer" includes any business entity or sole proprietor with a principal place of business in a covered disaster area. The final regulations were issued with an effective date of Dec. 30, 1999. |
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