By Paul N. Gada, Business Owner's Toolkit Staff Writer

For most taxpayers, the words "helpful" and "responsive" usually don't come to mind when thinking about the IRS. However, the IRS and other tax authorities on the state and local levels have responded quickly to do what they can to help those affected by the terrorist attacks that occurred on September 11.

To help do our part in the recovery process, we provide a summary of the most recent help offered by the various tax authorities.

IRS Disaster-Related Contact Information

One of the most important things in any recovery process is to quickly tap into any recovery resources that may be available. Recognizing this fact, the IRS has created several ways for taxpayers affected by the terrorist attacks to easily get tax-related answers and assistance.

The IRS has created a special page devoted to informing taxpayers of the latest terrorist attack disaster assistance (like filing extensions) offered by the IRS. The web site is being updated frequently and should be checked regularly throughout the next few months.

For business taxpayers, the IRS activated an electronic mailbox dedicated to providing assistance and answers to businesses affected by the September 11 terrorist attacks. The e-mail address was established to respond to questions businesses might have that are not addressed in the tax relief notices posted on the IRS web site. Businesses can send their questions to corp.disaster.relief@irs.gov.

"Because of the breadth and scope of the tragic events of September 11, taxpayers face many questions," said IRS Commissioner Charles O. Rossotti. "Businesses can get the answers about extensions and other tax relief stemming from these disasters by e-mailing their questions to us."

The IRS also has established a special toll-free telephone number for taxpayers whose ability to meet their federal tax obligations has been affected by the September 11 terrorist attacks. Because of the unusual nature of the tragic events of September 11, the IRS concedes that it is impossible for the agency to foresee every circumstance affecting taxpayers. The IRS, therefore, encourages taxpayers with related questions to call 1-866-562-5227.

"This special number will help people cut through the red tape and get their tax questions answered quickly," Rossotti said. "We don't want lingering tax questions to burden anyone during this challenging time."

Assistance, provided in English, is available Monday through Friday between 7 a.m. to 10 p.m. in the taxpayer's local time zone. Help is also provided in Spanish between 8 a.m. to 9:30 p.m. on the same days. "We wanted to provide specialized assistance to the people directly impacted by these tragic events," said Ron Watson, director of Customer Account Services for the IRS Wage and Investment Division.

Taxpayers with questions not related to the terrorist attacks should visit the IRS web site (www.irs.gov) or call the regular IRS toll-free number at 1-800-829-1040.

Quick Federal Tax Refunds for Casualty Losses

The IRS is reminding taxpayers who have suffered property losses due to the September 11 terrorist attacks that they may get a quick tax refund by claiming such losses on amended returns for tax year 2000. Affected taxpayers include individuals and businesses in presidentially declared disaster areas. By amending tax year 2000 returns, taxpayers may receive refunds in a few weeks rather than after the filing of a 2001 return. Taxpayers that were granted extensions to file tax year 2000 returns may include disaster losses on such returns.

However, the amount of any loss claimed must be reduced by insurance or other reimbursements received or expected. For personal use property, individuals must first subtract $100 for each casualty event. From the remaining total losses for the year, 10 percent of adjusted gross income must be subtracted. The remaining amount may be claimed as an itemized deduction.

To ensure speedy processing of the return, affected taxpayers claiming the loss on an amended return should put "September 11, 2001 Terrorist Attack" in red ink at the top of the return.

State Tax Assistance

Much like the IRS, state and local tax authorities have done what they can to assist those affected by the September 11 terrorist attacks. For example, the New York Department of Taxation and Finance has established a hotline for taxpayers to call for help, which is 1-800-CALL-TAX (800-225-5829).

The New York Department of Taxation and Finance also has announced that businesses and individuals affected by the terrorist attacks on September 11 will not be held to certain tax filing and payment deadlines. The Commissioner of Taxation and Finance has postponed deadlines from September 11 until December 10, 2001, for:

• filing any returns
• paying any tax or installment of tax
• filing a petition for credit or refund, or for redetermination of a deficiency, or an application for review of a decision
• allowing a credit or refund
• assessing tax
• giving or making a notice or demand for payment of tax
• collecting tax by levy or otherwise
• bringing suit by New York state for any tax liability
• any other act required or permitted under New York's tax laws or specified in the New York state regulations

Interest at the appropriate underpayment rate must be paid on tax payments received after the extended due date of December 10, 2001.

Those taxpayers affected by the terrorist attacks should mark "WTC" on the top center of the front page of any late filed return, extension, declaration of estimated tax, estimated tax voucher, or other document, and should include a brief explanation of the circumstances that affected their ability to meet the tax deadlines. Taxpayers directly affected by the attacks, and therefore eligible for the relief provided by the extended deadlines, include (but are not limited to) the following:

• all workers assisting in the relief activities in the areas of the World Trade Center, the Pentagon, and western Pennsylvania
• taxpayers whose records necessary to meet tax filing, payment, or other deadlines are not available due to the attacks
• taxpayers having difficulty in meeting such deadlines because of disruptions in the transportation and delivery of documents by mail or private delivery services, or due to disruptions in communications services (e.g., telephone, facsimile, or electronic mail) resulting from the attacks
• taxpayers whose tax practitioners were, because of the attacks, unable to complete work to meet such deadlines on behalf of their clients

Many other states, including New Jersey, Virginia, Colorado, Mississippi, Alabama, Ohio and Arizona, have provided similar extensions for taxpayers affected by the terrorist attacks.

Local Tax Assistance

On a local level, the New York City Department of Finance has extended tax filing and payment deadlines until December, for returns due in September, October and November.

• General corporation tax, unincorporated business tax, banking corporation tax, and cigarette tax returns and payments are due by December 17.
• Commercial rent or occupancy tax and hotel room occupancy-related taxes and returns are due by December 20.
• Utility tax requirements are extended to December 26.
• Any other tax filings will be handled on a case-by-case basis.

Returns filed under this announcement should be marked "World Trade Center" on the top center of the first page. Taxpayers must also include an explanation of how the disaster adversely affected their ability to meet their filing and payment obligations.

For more information about disaster relief services offered in New York City, contact the NYC Centralized Relief Hotline at (212) 221-8635 or visit the New York City government web site (http://home.nyc.gov/portal/index.jsp?pageID=nyc_home).

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IRS Filing Dates Postponed by Terror Attacks; Tax Relief Available for Those Affected