IRS Implements New Tax Relief for
Victims of Terrorist Attacks

WASHINGTON - The Internal Revenue Service has developed special procedures to expedite refund claims related to the Victims of Terrorism Tax Relief Act, which President Bush signed today.

Under this law, the federal income tax liability of those killed in the terrorist attacks of September 11, or as a result of the anthrax incidents last fall, is generally erased for both 2001 and 2000. The new law also provides for tax abatements for 1994 and 1995 for the victims of the April 1995 Oklahoma City bombing.

“We do not want those who lost loved ones in these attacks to be burdened by tax issues,” said IRS Commissioner Charles O. Rossotti. “When they´re ready to address such financial matters, we´re here to help them.”

The law provides that the minimum amount of relief for these victims will be $10,000. If the abated taxes for the two years are less than that, the government will refund the difference to the surviving spouse or to the victim´s estate.

Surviving spouses or executors of the Sept. 11 or anthrax victims may file amended tax returns for 2000 at any time until April 15, 2004, and may claim the tax relief for 2001 when they file the decedent´s return. Survivors or executors of those killed in Oklahoma City may file amended returns for 1994 and 1995 until Jan. 23, 2003.

Survivors or executors of these “Killed In Terrorist Action” (KITA) victims should put “KITA-Oklahoma City,” “KITA-9/11” or “KITA-Anthrax,” as appropriate, at the top of any amended or original tax returns claiming this relief and send them to the Internal Revenue Service, P.O. Box 4053, Woburn MA 01888. If using a private delivery service, they should send them to IRS, 310 Lowell St., Stop 661, Andover MA 01810.

The IRS is now finalizing a new Publication 3920, “Tax Relief for Victims of Terrorist Attacks,” which will include details on preparing refund claims. The IRS expects to make Pub. 3920 available in February on its Web site at www.irs.gov. Pub. 3920 will also be available by calling (toll-free) 1-800-TAX-FORM (1-800-829-3676). Taxpayers with questions about KITA relief may call (toll-free) 1-800-829-1040.

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