Notice 2014-20 - Extension of time for Colorado storm victims to claim losses 

March 25:  The IRS today issued Notice 2014-20 to postpone the deadline for taxpayers affected by September 2013 storms in Colorado to make an election to deduct losses attributable to storm-related damage in the preceding tax year.

Notice 2014-20 [PDF 20 KB] postpones until October 15, 2014, the deadline for taxpayers to make an election under section 165(i) to deduct in the preceding tax year, losses attributable to damage from severe storms, flooding, landslides, and mudslides sustained in the federally declared disaster area in Colorado.

The IRS explained in the notice that from September 11 through September 30, 2013, severe storms, flooding, landslides, and mudslides in Colorado (Colorado major flooding event) caused significant damage.

The IRS has identified an “affected taxpayer” to which the postponement of the deadline for making the section 165(i) election applies if:

  • The taxpayer sustained a loss attributable to the Colorado major flooding event.
  • The loss occurred in a covered disaster area for the Colorado major flooding event (regardless of whether the taxpayer’s principal residence or principal place of business is in one of the covered disaster areas).
  • The deadline for the taxpayer to make a section 165(i) election for the storm-related loss, but for today’s notice, would be before October 15, 2014.

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