In light of the recent national tragedy, the IRS has issued special rules for taxpayers facing tax filing deadlines in the months to come. If you have been directly affected by the terrorist activities, these extensions and waivers may be useful to you.  

No matter where the taxpayers reside, the IRS includes the following as those people and businesses directly affected by the terrorist activities: relief workers, passengers on the airplanes used in the attacks, people who live in or whose place of employment is in a disaster area, and taxpayers whose records are maintained in a disaster area. The President has designated the five boroughs of New York City as disaster areas, as well as Arlington County, Virginia.  

As affected taxpayers, if you have a tax return due between September 11 and November 30, 2001, the due date for filing that tax return and making any related payment has been extended by six months plus 120 days.  

Affected taxpayers who have a tax return on extension and the extended due date of that tax return is between September 11 and November 30, 2001, have an additional 120 days to file that tax return.   

Affected individual taxpayers who owe estimated tax payments on Monday, September 17, 2001, may postpone that payment until January 15, 2002, when their next quarterly payment is due, and may make both payments together at that time.  

Affected corporate taxpayers who owe an estimated tax payment between September 11, 2001, and January 15, 2002, may have until January 15, 2002 to make that payment.  

Affected companies that face payroll tax deposit deadlines between September 11, and October 31, 2001, may have until November 15 to make these deposits without facing a penalty.  

All taxpayers, both individual and corporate, who are directly affected by the terrorist attacks and who choose to take advantage of these extensions and waivers provided by the IRS, should add the following designation in red ink at the top of their tax return form when they file the form: "September 11, 2001 - Terrorist Attack."  

The extensions and waivers described in this column are available only for taxpayers directly affected by the terrorist activities, as described at the beginning of this column. All other taxpayers who face tax filing deadlines this fall, including taxpayers who are required to make third quarter estimated tax payments today, September 17, are required to make those payments on time.  

The IRS statement summarizing these measures is available on the Internet at www.irs.gov/news/ir-01-81.pdf.

Relief to Victim's Families  

In other news, the House of Representatives has passed a bill, H.R. 2884, that will reduce estate taxes on estates of victims of this recent terrorist attack. The bill will also relieve families of the attack victims of paying federal income tax for the year. The bill passed 418-0 in the House on Thursday last week, and it is expected that the bill will sail through the Senate as well. After approval in the Senate, the bill will have to be signed by the President before it becomes law.