Tax Relief for Victims of Severe Storms, Tornadoes, and Flooding in Kentucky

  • By creekmoremarketing
  • 29 Jul, 2015

DETROIT — Victims of the severe storms, tornadoes, straight-line winds and flooding that began on Feb. 29, 2012 in parts of Kentucky may qualify for tax relief from the Internal Revenue Service.

The President has declared Johnson, Kenton, Laurel, Lawrence, Menifee, Morgan and Pendleton 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 Feb. 29, and on or before May 31, have been postponed to May 31, 2012. This includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an individual retirement account (IRA).

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Feb. 29, and on or before March 15, as long as the deposits are made by March 15, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered   Disaster   Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until May 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Feb. 29 and on or before May 31.

The IRS also gives affected taxpayers until May 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Feb. 29 and on or before May 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Feb. 29 and on or before March 15 provided the taxpayer makes these deposits by March 15.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see   Form 4684   and its   instructions .

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Kentucky, Severe Storms, Tornadoes, Straight-line Winds, and Flooding” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of   Form 4506 , Request for Copy of Tax Return, or   Form 4506-T , Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM 800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

Disaster Assistance and Emergency Relief for Individuals and Businesses

Recent IRS Disaster Relief Announcements

Categories
Announcements Articles Events Marketing News Press Releases Resources Social Media Success Stories Technology

Recent Posts

By Robbi Meisel 16 Dec, 2015
LEXINGTON, Ky., (Dec. 7, 2015) –The Kentucky Small Business Development Center recognized its staff members for their achievements at the annual fall conference held at The Campbell House.

KSBDC state director Becky Naugle presented the year’s biggest awards. Top honors went to the University of Kentucky center at Elizabethtown, named 2015 Center of the Year. This award is bestowed upon the Small Business Development Center posting the highest results based on the annual goals.

The Morehead District SBDC received the Spirit Award for 2015. This award recognizes the center that demonstrated the SBDC spirit of service to the network and clients during the year.

The Northern Kentucky University center was awarded the Michael Rodriguez Traveling Trophy to acknowledge the largest goal increase achievement during the final six months of the fiscal year.

Lois Decker, of the Owensboro SBDC, was named 2015 Team Player of the Year for exhibiting extraordinary leadership and willingness to assist others. During her tenure, Decker has gone above and beyond in upholding the KSBDC’s mission of creating economic growth and aiding others in achieving success.

Tamela Darnell, of Murray State University SBDC was named 2015 Administration Person of the Year. Darnell was recognized for her diligent work on behalf of clients and fellow co-workers.

David Stevens, of the central office, was recognized as the 2015 Sutton Landry State Star. This honor is presented to an individual who is considered an example of excellence, makes a significant contribution to their center’s program and exhibits dedication to assisting small businesses.

Marge Berge, of the UK Central Office SBDC, was presented the first KSBDC Lifetime Achievement Award in recognition of her 32 years of exemplary service and dedication to the betterment of the organization as a whole.

In addition, 11 staff members were inducted into the exclusive Kentucky Small Business Development Center Million Dollar Loan Club. This honor is reserved for management consultants who help business clientele secure $1 million or more in loans to start, expand or purchase their companies. Statewide, KSBDC consultants aided entrepreneurs with more than $32 million in loans during the 2014-2015 fiscal year.

The 2015 inductees were:
Fausto Sarmiento, UK Bluegrass SBDC
Steve Heil and Patricia Krausman, UK Elizabethtown SBDC
David Oetken and Toni Sears, UK Louisville SBDC
Kim Jenkins and Mark Murphy, Morehead SBDC
Lois Decker and Chris Wooldridge, Murray SBDC
Rebecca Volpe, NKU SBDC
Miller Slaughter, Western Kentucky University SBDC
Gordon Garrett, UK SBDC Central office

KSBDC presented 11 staff members with service awards. Five years of service recipients were: Becky Marefat, UK Bluegrass SBDC; Vallorie Henderson and David Oetken, UK Louisville SBDC; and Miller Slaughter, WKU SBDC. Marking 10 years of service were Shirie Hawkins, UK Bluegrass SBDC; Gordon Garrett, UK Central Office SBDC, and Janet Flaugh and Toni Sears, UK Louisville SBDC. Celebrating 15 years were Dee Dee Harbut, UK Central Office SBDC and John Preston, Eastern Kentucky University SBDC. Hitting the 30-year milestone was Mike Morley from the Morehead State University at Pikeville SBDC.

Dee Dee Harbut, director of the Kentucky Procurement Technical Assistance Center, presented the first annual Three Cheers award to Debbie McKnight. This award is chosen by the clients to recognize a consultant’s hard work with government contracting assistance.

“The impact of KSBDC staff’s hard work reaches every county in Kentucky. I am so proud of the contribution SBDC and PTAC staffs make to our ‘Common Wealth,’ and it is an honor to recognize their accomplishments,” Naugle said.

The Kentucky Small Business Development Center, part of the UK College of Agriculture, Food and Environment, is a network of 17 offices located throughout the state that helps existing and start-up businesses succeed by offering high quality, in-depth and hands-on services. The KSBDC is a partner program with the U.S. Small Business Administration. For more information on KSBDC services, visit their website, http://www.ksbdc.org/ .

Photo provided by the Kentucky Small Business Development Center –2015 KSBDC Lifetime Achievement Award winner Marge Berge with state director, Becky Naugle. ©KSBDC

UK College of Agriculture, Food and Environment, through its land-grant mission, reaches across the commonwealth with teaching, research and extension to enhance the lives of Kentuckians.
By Robbi Meisel 22 Sep, 2015
LEXINGTON, Ky., (Sept. 22, 2015) –The Kentucky Small Business Development Center announced David Stevens, principal accountant, as the recipient of the 2015 Sutton Landry State Star for Kentucky. Stevens was recognized at a private reception during the recent America’s SBDC Conference in San Francisco.

The America’s SBDC honors a state star from each SBDC annually. The award is presented to an individual who is considered an example of excellence, makes a significant contribution to their center’s program and exhibits dedication to assisting small businesses.

“I was honored to accept the state star award at the ASBDC annual conference. I want to give special thanks to our State Director, Becky Naugle, for giving me this wonderful award and opportunity,” Stevens said. “In addition to receiving the award I was given a special tour of Silicon Valley visiting Intuit, Google and Facebook. It was a very educational opportunity which I will never forget.”

Naugle said, “This award is a wonderful way to honor David’s dedication and exemplary service to the small business community and KSBDC.”

Stevens began working at the University of Kentucky in 1980 and joined the KSBDC as the principal accountant in 1989. He is a UK graduate with a Bachelor of Science degree in accounting.

His dedication to crunching the numbers, proposal preparation and superb budgeting has contributed to the many successes the organization has realized over the past three decades. During his tenure, the network of Kentucky SBDC offices has been noted for extraordinary work, receiving statewide recognition for performance and productivity.

The Kentucky Small Business Development Center, part of the UK College of Agriculture, Food and Environment, is a network of 15 offices located throughout the state that helps existing and start-up businesses succeed by offering high quality, in-depth and hands-on services. KSBDC is a partner program with the U.S. Small Business Administration. For more information on KSBDC services, visit their website, http://www.ksbdc.org/ .

Photo provided by the Kentucky Small Business Development Center - 2015 State Star Award winners at ASBDC Conference in San Francisco, CA ©KSBDC

UK College of Agriculture, Food and Environment, through its land-grant mission, reaches across the commonwealth with teaching, research and extension to enhance the lives of Kentuckians.
By creekmoremarketing 31 Jul, 2015

LEXINGTON, Ky., (May 6, 2015)   – The commonwealth’s best were celebrated in the Capitol Rotunda in Frankfort on May 6 with an awards ceremony recognizing outstanding small businesses and small-business people. Kentucky Celebrates Small Business was presented by the Kentucky Small Business Development Center, the Kentucky district office of the U.S. Small Business Administration and the Lexington chapter of the National Association of Women Business Owners.

“Small Business Week is big in Kentucky! These three organizations share the mission of supporting and encouraging small business and are proud to celebrate the wonderful entrepreneurial talent in Kentucky,” said Becky Naugle, KSBDC director.KSBDC selects Kentucky Pacesetter businesses based on how the nominees are changing Kentucky’s economic landscape by introducing innovative products, increasing sales and/or production, boosting employment and serving their communities.

This year’s outstanding Kentucky Pacesetters are:
• A.C.E. Compressor Services Inc., Mayfield
• Green River Appliance, Owensboro
• Stewart and Stafford Inc., Pikeville
• Sustainment Solutions Inc., Lancaster

Each year, the U.S. Small Business Administration recognizes outstanding small businesses and entrepreneurs with awards across the country. The Small Business of the Year winner from each state has the opportunity to be acknowledged at both regional and national levels.

The 2015 Kentucky Small Business Administration award winners are:
• Kentucky Small Business Person of the Year: Scott Shinn, president and CEO of Sustainment Solutions Inc.
• Kentucky 8(a) Graduate of the Year: Kathy Mills, president and CEO of Strategic Communications
• Kentucky SBA Resource Partner of the Year: David Oetken, director of Small Business Development Center Louisville
• Kentucky Financial Services Advocate of the Year: Mark Strother, president and CEO of Commercial Bank of Grayson
• Kentucky Home Based Business of the Year: Nicole Mueller, president and owner of Startup Productions LLC
• Kentucky Woman Small Business Advocate of the Year: Michelle Gorman, small business specialist at U.S. Bank of Bowling Green
• Kentucky Young Entrepreneur of the Year: Shane Hamilton, president and owner of Service Maids LLC

“Entrepreneurs are the engines who drive our economy forward,” said Ralph Ross, district director of the Kentucky office of the U.S. Small Business Administration. “Every year we honor them during Small Business Week, and this year we have an extra reason to celebrate. The Kentucky unemployment rate has dropped to 5.1 percent, and demand for SBA loans has increased 30 percent over last year. Our Kentucky entrepreneurs are hard at work, and we cannot thank them enough.”

The Lexington chapter of the National Association of Women Business Owners strives to propel female entrepreneurs to spheres of economic, social and political influence through strengthening economic development, creating innovative and effective changes in the business culture, building strategic alliances and transforming public policies.

Their Winners’ Circle Award is presented annually to a Kentucky woman who has shown outstanding leadership, financial stamina and control, contributed to her community through time and resources, understands and resolves complex issues, and is dedicated to furthering women in business through personal support and mentoring. The 2015 recipient is Dr. Ardis Dee Hoven, past president of the American Medical Association and a Lexington-based infectious disease physician.

The chapter also presented the following awards:
• Woman Business Owner of the Year: Dr. Jennifer Fuson, owner of Lexington Women’s Health
• Member of the Year: Karen Boone, owner of Kreations by Karen
• Tribute Award: Ericka Harney, executive director of Accounting and Financial Women’s Alliance
• Rising Star Award: Kelly King Bakehorn, owner and president of The Grand Reserve and The Barrel House
• Legacy Award: Kathy Gornik, president and CEO of Aperture Consulting

“With the latest census statistics showing that the majority of all workers in America are employed by small-business owners, we are reminded that small-business owners are the true unsung heroes of our times,” said Janey Moores, NAWBO Lexington chapter awards coordinator. “That same census also shows that women now own at least a third of all businesses in the U.S. As more and more women follow the dreams of their hearts by owning their own businesses, America grows stronger by the day and remains the land of the free and the home of the brave.”

The Kentucky Small Business Development Center, part of the University of Kentucky College of Agriculture, Food and Environment, is a network of 15 offices located throughout the state. The center helps existing and start-up businesses succeed by offering high quality, in-depth and hands-on services. KSBDC is a partner program with the U.S. Small Business Administration. For more information on KSBDC services, visit their website, http://www.ksbdc.org/ .

Writer: Roberta Meisel, 859-257-7668

UK College of Agriculture, Food and Environment, through its land-grant mission, reaches across the commonwealth with teaching, research and extension to enhance the lives of Kentuckians.

More Posts
Share by: