The IRS has issued guidance (Notice 2013-21) postponing the deadline for making an election to claim Hurricane Sandy losses in a prior year until Oct. 15, 2013.
Section 165(i) allows taxpayers to claim losses from federally declared disasters in the year preceding the year of the actual disaster. The provision is meant to allow taxpayers to obtain the tax benefit of the losses more quickly than they would by waiting to claim them when the return is filed for the year of the actual loss. The regulations generally require the taxpayer to make the election under Section 165(i) by the later of the original due date (without extension) of the return for the year of the disaster, or the due date for the prior year's return, including any extensions.
Notice 2013-21 allows taxpayers with losses attributable to Hurricane Sandy in any of the federally declared disaster areas to make the election until Oct. 15, 2013.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
