The devastating terrorist attacks on New York City and Washington, DC, raise a number of important issues for church treasurers. Some of the more important issues are addressed in this article.
1. Tax Relief
When disasters strike, the IRS often responds by providing victims with various forms of relief. In the wake of the terrorist attacks on New York City and Washington, DC, the IRS has announced the following:
- Taxpayers who suffered property losses because of the terrorist attacks can get a quick tax refund by claiming these losses on an amended return for 2000 rather than claiming them on their 2001 return.
- "Directly affected" taxpayers have until January 15, 2002 to file their September 17, 2001 estimated tax payment (for the third quarter of the year). Affected taxpayers make this payment with their final 2001 estimated payment on January 15, 2002. Taxpayers entitled to this relief should write "September 11-Terrorist Attack" in red ink at the top of the returns they file (Form 1040-ES). Taxpayers who qualify for this relief include all relief workers, airplane crash victims, and people who work, or whose tax records are kept, in the disaster areas. Residents of New York City's five boroughs, and of Arlington County where the Pentagon is located, will also qualify for this relief.