Along the Gulf Coast of Mississippi and Louisiana, people are trying to rebuild their lives after Hurricanes Katrina and Rita. Nearly five months after Katrina swept through the Gulf states, these residents are focused on cleaning up their homes, rebuilding and, in some cases, simply finding a place to live. The last thing any of these people want to think about right now is TAX TIME. But, where man is appointed to die only once, the tax collector appears annually, whether he is ready or not.

But it’s not all gloom and doom this year on the tax front for people living in storm-affected areas. The US Internal Revenue Service and Treasury Department have issued a series of tax rulings following President Bush’s disaster declarations along the Gulf Coast. The following is an explanation of some of the many provisions to help this year.

Extended deadlines for filing and paying income taxes

Taxpayers in the affected areas will have until February 28, 2006 to file any income, estate, gift, excise, or payroll tax returns due on or after August 29, 2005. In addition, any penalties or interest for late filing of Payroll or income taxes to the IRS that were due in this date range will be removed.

Displaced Person Housing Tax Relief

A special deduction has been created for people who poured out their homes and hearts to provide free housing for storm victims for at least 60 days. The deduction can be claimed on your 2005 or 2006 federal tax return. The deduction is $500 for each displaced person housed in the taxpayer’s primary residence. The deduction is limited to $2,000 combined for 2005 and 2006. You must have the storm victim’s social security number. The displaced person may be a family member. So the grandmother and grandfather who kept the kids and grandkids can get more benefits than just the fun of having their loved ones around.

Louisiana only

Victims of storms in Louisiana who report their casualty loss damages on their federal returns will not have their state tax deduction reduced for federal taxes paid. Taxpayers will need to figure their federal tax returns with and without losses to determine the deduction on the state return.

Like I said, these are just a few of the many provisions. Therefore, if you use a payroll tax service such as ADP, be sure to contact them to ensure that they have accounted for the adjusted due date with respect to your tax deposits. Also, you should make sure that all paid tax preparers are notified that you reside in an affected area to ensure that you are considered when filing forms and making payments. And finally, may God bless you and keep you safe. Taxes are one thing. But, the safety of our loved ones and friends is always the most important thing.