Tax Policy and Disaster Recovery [Updated February 11, 2020]   [open pdf - 1MB]

From the Document: "The Internal Revenue Code (IRC) contains a number of provisions intended to provide disaster relief. Following certain disasters, Congress has passed legislation with temporary and targeted tax relief policies. At other times, Congress has passed legislation providing tax relief to those affected by all federally declared major disasters (disasters with Stafford Act declarations) occurring during a set time period. In addition, several disaster tax relief provisions are permanent features of the IRC. This report discusses the following permanent provisions: [1] disaster casualty loss deductions; [2] deferral of gain from involuntary conversions of property destroyed by a disaster; [3] disaster relief for owners of low-income housing tax credit properties; [4] income exclusion for disaster relief payments to individuals; [5] income exclusion for certain insurance living expense payments; and [6] IRS [Internal Revenue Service] administrative relief in the form of extended deadlines and waiving of certain penalties. [...] This report provides a basic overview of existing, permanent disaster tax provisions, as well as past, targeted legislative responses to specific disasters. The report also includes a discussion of economic and policy considerations related to providing disaster tax relief to individuals and businesses, and encouraging charitable giving to support disaster relief."

Report Number:
CRS Report for Congress, R45864
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Media Type:
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