A second benefit for those directly affected with casualty losses (flood or wind damage to their property) is that they are allowed to include the casualty loss as an expense on their 2011 tax return OR their 2010 tax return. If the 2010 tax return was already filed, the taxpayer can amend the tax return in order to get the benefit immediately. This is a great option for taxpayers who had uninsured flood losses.
IRS penalties for late filing of a tax return can be as high as 5% of unpaid tax liabilities for individuals and $195 per owner for an S-Corporation, for each month the return is late. These penalties add up quickly, but there is still time to act. If you have specific questions, need assistance filing an original or amended return, or preparing your estimated tax payments, please feel free to contact Mark Breon, EA of BuxMont Accounting at 267-999-9002.
For more information, see the IRS bulletin on Hurricane Irene here : http://www.irs.gov/newsroom/article/0,,id=245668,00.html