Dear [CLIENT NAME]:
I hope this letter finds you and your family safe. I understand you have been impacted by [identify the disaster, such as Los Angeles County Wildfires], and I want you to know that our thoughts are with you during this difficult time. Please focus on your immediate needs and recovery first — tax matters can wait until you have dealt with these needs, but we should at least have a brief discussion soon to make you aware of the tax deadlines that apply to you and the important documentation you may need to create and/or preserve.
I am writing to make you aware of several important tax relief provisions that may be available to you due to the federal disaster declaration for your area.
Key issues that may affect you
The IRS and [state tax agency] typically provide automatic extensions for filing and payment deadlines, penalty relief, and special casualty loss deduction rules for federally declared disaster areas. Additionally, you may be eligible to claim casualty losses related to your damaged property on either your current-year or prior-year income tax return, potentially generating an immediate refund. There are also provisions regarding retirement plan distributions, tax-free grants and loans, and reconstruction financing that could apply to your situation. Property tax relief may be available to you as well.
Why we should connect
Once you have had time to address your immediate concerns, I strongly encourage you to contact our office. We can help you:
- Determine all available relief provisions and deadlines applicable to your specific situation;
- Evaluate whether to claim casualty losses on your 20[XX] or 20[XX] return for maximum benefit;
- Document your losses properly to support your deductions;
- Identify any missed opportunities for disaster-related tax benefits;
- Evaluate the property tax ramifications of deciding whether you rebuild or relocate; and
- Ensure compliance with any special filing requirements.
Every disaster situation is unique, and the tax implications depend on the specific losses you have suffered, your insurance coverage, and your overall financial picture. Unfortunately, a “tax loss” is very often different than the actual loss you might have incurred. A consultation will allow us to develop a customized strategy to maximize your available tax relief.
When you’re ready
When you are ready to discuss these matters, simply call our office at [phone number] or e-mail me at [e-mail address]. We will work with you at your pace and help ensure you receive every tax benefit to which you are entitled. But a quick check-in soon may ensure that you are able to qualify for the maximum tax relief and benefits available to you.
Again, please know that our primary concern is your well-being. We are here to help when the time is right.
Sincerely,
Your tax professional
