The IRS has issued tax relief for the victims of Hurricane Katrina and Hurricane Rita.

Hurricane Katrina Relief

The tax relief for Hurricane Katrina Victims is as follows.

Withdrawals and Loans from Retirement Plans.  The Treasury Department and IRS announced on September 15, 2005, that 401(k) plans and similar plans, such as those under section 403(b), will be permitted to make loans and hardship distributions to victims of Hurricane Katrina. Read IR-2005-15 and Announcement 2005-70 for more information.

Leave Donation Program. A broad coalition of business and charitable associations joined with the Internal Revenue Service and the Department of Treasury on September 30, 2005, to announce a partnership aimed at educating the nation’s employers about a leave-donation program benefiting Hurricane Katrina victims. Read IR- 2005-97 and IR-2005-113 for more details.

Certain Employee Plan Contributions.  The Internal Revenue Service, the Department of Labor's Employee Benefits Security Administration, and the Pension Benefit Guaranty Corporation officials announced on Sept. 2, 2005, that their agencies are providing relief in connection with certain employee benefit plans. These plans will have until Oct. 31, 2005, to make minimum funding contributions, or apply for waivers, if the deadline for such actions was from Aug. 29, 2005 through Oct. 30, 2005. Read IR-2005-90 and Notice 2005-60 for more information.

Deadlines Extended for Taxpayers. The Katrina Emergency Tax Relief Act of 2005 (H.R. 3768), signed on Sept. 23, postpones deadlines for affected taxpayers to file tax returns, pay taxes, and perform other time-sensitive acts until Feb. 28, 2006. Taxpayers affected by the hurricane may be eligible for tax relief, regardless of where they live. Read IR 2005-112 for more details.

Hurricane Tina Relief

Deadlines Extended for Taxpayers. IRS extended the same taxpayer relief given to Hurricane Katrina victims to the Hurricane Rita victims. Read IR 2005-110 for more details.

Click here for list of IRS's Katrina News Releases and Legal Guidance.