AROUND SOUTH MISSISSIPPI

IRS grants extension to report storm losses

The IRS has announced an Oct. 16 extension for Mississippi taxpayers who suffered losses due to Katrina to report those losses on their prior year's federal income tax return. The original deadline to claim losses on 2004 tax returns was April 17. The extension does not affect the regular tax-filing deadlines for either 2004 or 2005.

Those who have already filed their prior year's return can file an amended return.

Hurricane victims should keep accurate records to document a casualty loss deduction. Taxpayers should write the name of the hurricane in red ink at the top of their return to speed processing.

IRS publication 4492, "Information for Taxpayers Affected by Hurricanes Katrina, Rita and Wilma," provides a complete explanation of the disaster loss rules and special instructions for claiming losses. This, with other disaster-related information, is available at www.irs.gov or the IRS disaster hot line, (866) 562-5227.

Taxpayers with state questions can contact the Mississippi State Tax Commission at (601) 923-7000.

--The Sun Herald, Biloxi