Payments to Employees Affected by the Local Fires

During these tragic times businesses may want to help employees affected by the local fires. The purpose of the following information is to highlight some tax efficient opportunities to help employees affected by the local fires which were declared a qualified disaster by President Trump. IRC section 139 allow employers to provide qualified disaster relief payments to employees that have incurred unreimbursed expenses due to a qualified disaster (such as the local fires) and have those payments excluded from the employees gross income and included as deductible expense for the business making the payment. For the payments to be considered qualified disaster relief payments, they should be for either items i. or ii. below, but only to the extent not already covered by insurance.

Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a disaster. This would include expenses related to loss of use.
Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence or repair or replacement of its contents to the extent that the need for such repair, rehabilitation, or replacement is attributable to a qualified disaster.

Other items to point out:

To […]

By Linkenheimer LLP|2020-09-03T20:04:51+00:00October 19th, 2017|business, Community, disaster, Fire Relief Info, relief, tax|0 Comments

Tax And Disaster Info For Those Affected By The Fires

Linkenheimer has been an active part of our Sonoma County community for over 85 years. And like most of you, we have all been profoundly affected by these horrific fires that have swept through our community and continue to affect those that live here. We have lost houses and entire neighborhoods, friends and families have been displaced and like many of you, we are still reeling from the ongoing damage the fires have created. We want to express our utmost condolences to all of our friends, families and clients who have lost something in this disaster. And we want you to know, we will be working side by side with you all during this difficult time to rebuild our community. With power, utilities and cell phone coverage being scarce, we want to try and provide as much information as we can in one post, so that it can be shared effectively with those desperately in need of information and reassurance.

As some of you know, the October 15th tax deadline is near. We have spoken with the IRS regarding extension relief for our clients. Due to our office being located […]

By Linkenheimer LLP|2020-09-03T20:04:53+00:00October 11th, 2017|Community, disaster, Fire Relief Info, irs, relief|0 Comments

Tax Relief for California Earthquake Victims

NAPA, Calif. — Victims of the earthquake that occurred Aug. 24, 2014 in parts of California may qualify for tax relief from the Internal Revenue Service.

Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency (FEMA), the IRS announced today that affected taxpayers in California will receive tax relief.

The President has declared Napa and Solano counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 24, 2014 and on or before Jan. 15, 2015, have been postponed through Jan. 15, 2015. This includes corporations and businesses that previously obtained an extension until Sept. 15, 2014, to file their 2013 returns and individuals and businesses that received a similar extension until Oct. 15. It also includes the estimated tax payment for the third quarter of 2014, which would normally be due Sept. 15.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the […]

By Linkenheimer LLP|2020-09-03T20:05:43+00:00October 30th, 2014|earthquake, relief|0 Comments

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Payments to Employees Affected by the Local Fires

Tax And Disaster Info For Those Affected By The Fires

Tax Relief for California Earthquake Victims

NAPA, Calif. — Victims of the earthquake that occurred Aug. 24, 2014 in parts of California may qualify for tax relief from the Internal Revenue Service.