Monday, October 17, 2016



The catastrophic disaster event has destroyed or damaged your home!  You have many new responsibilities to accomplish while maintaining a life, a family, a job. One of the responsibilities is dealing with the income tax consequences including the tax reporting. The rules can be complicated to understand and comply with. The IRS publication seems easy, but what is not included. You have no experience dealing with these rules. These events seem to be occurring more often, yet not only do you have no experience dealing with the tax aspect, your tax professional also lacks the experience and deep understanding needed to navigate the requirements. There is a lot of money at risk. If you don’t get it right, the IRS audit could cost you a lot of money (additional taxes, interest and penalties) putting your family’s security at risk. This is money you need to repair/rebuild you home.

You call your insurance company. You determine that the coverage is not enough . You contact a contractor, you call you mortgage lender, you arrange to have the debris removed. Is there asbestos to be dealt with? Then you wonder about the income tax consequences. In any major casualty, one of the first calls should be to a tax professional who deals with these event all the time; there are many tax responsibilities that need immediate attention.

You call the income tax professional you have relied on for years. The professional tells you he/she will assist you with the income tax consequences. But did you ask what experience he/she has reporting these events? What should you do immediately? Probably, you don’t ask. You have too many other responsibilities and you have dealt with your tax professional for years. In fact, of all the skilled professionals you now need, your tax professional is the only one with whom you have an existing relationship. It seems like this part is under control.

But it is probably not under control.

In some areas of the country many, professionals have experience dealing with the tax reporting of a disaster because annually a tornado or hurricane comes through the area.

But then there is the old “saw:”
“Lighting doesn’t strike twice in the same place.”
Often the tornado is nearby even if it is not your home that is affected this time. Even in these areas of high recurrence, a particular tax professional may only deal with a disaster event once every four or five years.

Some income tax reporting responsibilities like a disaster are unique or at least rare. Let’s compare this situation to a situation that you may be more familiar with.

You own a car.
Sometime in your many years of owning a car you have changed the oil, replaced windshield wiper blades or checked the tire pressure. But, when the check engine light starts flashing you quickly get the car to a mechanic that you trust will diagnosis the problem. Maybe it is easy or maybe you need a new head gasket; a difficult situation that you are not going to tackle yourself. The mechanic has the tools, the skills and the experience to deal with the situation.

What do you do when the problem is the transmission? Most likely, your trusted mechanic will tell you that special tools may be needed. There are so many manuals for different transmissions. The shop isn’t called on to repair a transmission often enough to make it efficient to have the repair manuals, the tools or the expertise for transmissions. Your mechanic sends you to a transmission specialist who has the expertise, the tools and the manuals to assist you with your transmission repair.

What, you ask, does this have to do with disaster income taxes?

Let’s compare the situations…
For many simple income tax returns, taxpayers prepare their own income tax forms, like changing the oil or they may have a professional do the work. Once the tax return becomes more complicated and seems beyond simple preparation knowledge, taxpayers develop ongoing relationships with a tax professional who demonstrates they have the knowledge to prepare the taxpayer’s returns. These situations usually involve ongoing tax reporting of investments, rentals, farming operations, large charitable contributions, small businesses, employee expenses, deferred compensation, and more. The tax professional will often be involved in tax planning to help the taxpayer deal with their tax responsibilities very efficiently. But when you have a disaster recovery situation, what are the odds that your tax professional will have the specialized knowledge to assist you with the proper reporting, including using the benefits built into the tax law provides for these events?

A 2014 Pew Trust study states:
“All told, up to 1.2 million tax preparers make a living deciphering the labyrinth U.S. tax code for taxpayers. The IRS reported 63 percent of all returns were done by tax preparers in 2013 and estimates are that about half were filed by unregulated preparers.”

The study determined that “many of the small, independent tax preparers are subject to no standards at all.” For these income tax preparers there are no standards of professional competence they must adhere to.

In 2011 approximately 141,000 tax returns were filed claiming a casualty loss. The average loss claimed was $22,000. This average was about the same for 2005, the year of the Hurricane Katrina disaster. The number of forms claiming a casualty loss deduction for 2005 was about 819,000. Assuming that 2011 was a normal year and that the number of income tax preparers for 2011 was similar to 2013, 1.2 million, there is about a 10% chance that a tax preparer will have a casualty loss claim in any one year to report. To this situation add the fact that the average casualty loss for 2011 was $22,000. Many of the losses claimed were quite small. Where a disaster loss is involved the deductible loss is likely to be substantially greater than $22, 000. The average includes small casualty losses  under $22,000, as well as some losses of over $100,000 or $500,000. There is a very small chance that an individual income tax preparer will see a casualty loss claim in any one year or even in a life-time. It is also probable that in any one year there are going to be income tax preparers who have more than one client who has a casualty loss claim as disasters result in a cluster of losses. You can conclude that in many areas of the country it is likely that an individual income tax preparer may spend a career not having to prepare a tax return that includes a significant disaster loss claim. I can testify that for the first 9 years of my professional career, I had no experience with a casualty loss of any kind. In my first 27 years of practice only one client had a significant casualty loss.

IRS Statistics for 2005 and 2011
of Returns
With Itemized Deductions )
Casualty or Theft Loss Deductions
Total Number of Returns Filed
Total Amount
Loss Claimed

After the 1994 Northridge Earthquake that rocked the San Fernando Valley area of Los Angeles in January, damaging several hundred thousand homes, I had the opportunity to spend months prior to the 1994 filing season that started in in January 1995, preparing for the tax returns that would be reporting the income tax consequences of the disaster. Once I had developed that specific knowledge to sereve taxpayer after the 1994 earthquake, I decided that it was an area of the tax law that I could concentrate on, helping taxpayers in other disasters.

Over the years I have had the opportunity to correct returns filed by other tax preparers, often saving the taxpayers tens of thousands of dollars in taxes.

Like the “transmission specialist,” whose business is often dependent on referrals from auto mechanics, knowledgeable income tax professionals call on my firm to assist their clients with the details of reporting a disaster while retaining the preparation of the rest of the tax return themselves, maintaining the ongoing  relationship with their client. This way the client has the best of service, the basic return is prepared by a tax preparer who has the ongoing service relationship while the disaster reporting is handled by our firm in an efficient manner consistent with observing the special tax laws related to reporting a disaster event.

These tax professionals don’t want to learn all the details necessary to properly report a client’s disaster reporting situation. The client gets the benefit of having an experienced professional make sure that the income tax consequences of the disaster are reported properly. The income tax professional saves learning time for reporting an event that they may never have to deal with ever again.

Questions to ask your income tax professional

1.                  Have you prepared any income tax returns reporting a disaster?
My Answer:
I have prepared disaster loss returns for taxpayers in California (fires and earthquake), East Coast (hurricanes), Mid-west (fires and floods).

2.                  How much time do you spend, annually, maintaining the special knowledge related to reporting a disaster on an income tax return?
My Answer:
Although I have spent over 22 years concentrating on this area of the tax law, I spend over 100 hours per year maintaining and updating my knowledge. The IRS and courts are always issuining out new interpretations or sustaining and solidifying existing rules.

3.                  What services do you provide to the community related to preparing for a disaster?
My Answer:
I have prepared a concise Disaster Preparation Guide for taxpayers, if implemented, will reduce the stress of experiencing a disaster event.
I have materials that are continually revised for presentation to taxpayer community groups consisting of those who have experienced a disaster. I don’t charge for my time for these meetings.
There is a lot of information on this blog that I have developed over the past eight years.
Taxpayers can view a video of a presentation I made in Colorado in February 2014. It can be viewed by Googling or searching YouTube for “Post Disaster Income Issues.”

4.                  Have you personally experienced a disaster loss?
My Answer:
My life was totally changed as a result of the January 17, 1994, Northridge Earthquake.

5.                  What types of losses have you reported for taxpayers?
My Answer:
Earthquakes, Fires, Floods, Hurricanes

6.                  Is your tax preparer willing to work with a knowledgeable CPPA to be confident that your disaster situation is being reported properly?
Your Tax Preparer’s Answer:

Thursday, October 6, 2016

Natural disasters: Emergency plans

Natural disasters: Emergency plans
IRS Advises Taxpayers to Prepare for Hurricanes, Floods and Other Natural Disasters

IRS YouTube Videos
Preparing for Disasters : English / Spanish / ASL
IR-2016-128, Oct. 5, 2016
WASHINGTON—The Internal Revenue Service today offered advice to taxpayers who may be affected by storms or other natural disasters. The IRS also reminded taxpayers that the agency is here to help including offering a special toll-free number to taxpayers in federally-declared disaster areas, staffed with IRS specialists trained to handle disaster-related issues.
Don't Forget to Update Emergency Plans
Because a disaster can strike any time, be sure to review emergency plans annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes. Make plans ahead of time and be sure to practice them.
Create Electronic Copies of Key Documents
Taxpayers can help themselves by keeping a duplicate set of key documents including bank statements, tax returns, identifications and insurance policies in a safe place such as a waterproof container and away from the original set.
Doing so is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original documents are only provided on paper, these can be scanned into an electronic format. This way, taxpayers can download them to a storage device such as an external hard drive or USB flash drive, or burn them to a CD or DVD.
Document Valuables
It's a good idea to photograph or videotape the contents of any home, especially items of higher value. Documenting these items ahead of time will make it easier to quickly claim any available insurance and tax benefits after the disaster strikes. The IRS has a disaster loss workbook, Publication 584 , which can help taxpayers compile a room-by-room list of belongings.
Photographs can help an individual prove the fair market value of items for insurance and casualty loss claims. Ideally, photos should be stored with a friend or family member who lives outside the area.
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
IRS Ready to Help
In the case of a federally declared disaster, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.
Back copies of previously-filed tax returns and all attachments, including Forms W-2, can be requested by filing Form 4506, Request for Copy of Tax Return . Alternatively, transcripts showing most line items on these returns can be ordered through the Get Transcript link on, by calling 1-800-908-9946 or by using Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript or Form 4506-T, Request for Transcript of Tax Return .
Related Items:
·            Tax Relief in Disaster Situations
·            Publication 583, Starting a Business and Keeping Records

Monday, October 3, 2016

Assistance for Farmers and Ranchers dealing with the ravages of drought.

Assistance for Farmers and Ranchers dealing with the ravages of drought.
Below is the full text of IRS Notice 2016-60:

Notice 2016-60, I.R.B. 2016-42, September 30, 2016.
Livestock: Involuntary conversion: Replacement period: Extension of time for replacement.–
The IRS has provided a one-year extension of the replacement period for farmers and ranchers who were forced to sell livestock due to drought. Accordingly, farmers and ranchers in the listed areas whose drought-sale replacement period was scheduled to expire at the end of the tax year will have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales. The extension of the replacement period generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter, or held for sporting purposes and poultry are not eligible. The relief applies to any farm/ranch located in a county, parish, city or district listed, or contiguous to a county listed, as suffering from exceptional, extreme or severe drought conditions by the National Drought Mitigation Center (NDMC) during any weekly period between September 1, 2015, and August 31, 2016. All or part of 37 states and Puerto Rico are listed. Because the normal drought-sale replacement period is four years, the extension immediately impacts drought sales that occurred during 2012. But because of previous drought-related extensions affecting some of these localities, the replacement periods for some drought sales before 2012 are also affected. Additional extensions will be granted if severe drought conditions persist. Back reference: ¶29,650.127.
Extension of Replacement Period for Livestock Sold on Account of Drought
Notice 2016-60
This notice provides guidance regarding an extension of the replacement period under §1033(e) of the Internal Revenue Code for livestock sold on account of drought in specified counties.
.01 Nonrecognition of Gain on Involuntary Conversion of Livestock. Section 1033(a) generally provides for nonrecognition of gain when property is involuntarily converted and replaced with property that is similar or related in service or use. Section 1033(e)(1) provides that a sale or exchange of livestock (other than poultry) held by a taxpayer for draft, breeding, or dairy purposes in excess of the number that would be sold following the taxpayer's usual business practices is treated as an involuntary conversion if the livestock is sold or exchanged solely on account of drought, flood, or other weather-related conditions.
.02 Replacement Period. Section 1033(a)(2)(A) generally provides that gain from an involuntary conversion is recognized only to the extent the amount realized on the conversion exceeds the cost of replacement property purchased during the replacement period. If a sale or exchange of livestock is treated as an involuntary conversion under §1033(e)(1) and is solely on account of drought, flood, or other weather-related conditions that result in the area being designated as eligible for assistance by the federal government, §1033(e)(2)(A) provides that the replacement period ends four years after the close of the first taxable year in which any part of the gain from the conversion is realized. Section 1033(e)(2)(B) provides that the Secretary may extend this replacement period on a regional basis for such additional time as the Secretary determines appropriate if the weather-related conditions that resulted in the area being designated as eligible for assistance by the federal government continue for more than three years. Section 1033(e)(2) is effective for any taxable year with respect to which the due date (without regard to extensions) for a taxpayer's return is after December 31, 2002.
Notice 2006-82, 2006-2 C.B. 529, provides for extensions of the replacement period under §1033(e)(2)(B). If a sale or exchange of livestock is treated as an involuntary conversion on account of drought and the taxpayer's replacement period is determined under §1033(e)(2)(A), the replacement period will be extended under §1033(e)(2)(B) and Notice 2006-82 until the end of the taxpayer's first taxable year ending after the first drought-free year for the applicable region. For this purpose, the first drought-free year for the applicable region is the first 12-month period that (1) ends August 31; (2) ends in or after the last year of the taxpayer's 4-year replacement period determined under §1033(e)(2)(A); and (3) does not include any weekly period for which exceptional, extreme, or severe drought is reported for any location in the applicable region. The applicable region is the county that experienced the drought conditions on account of which the livestock was sold or exchanged and all counties that are contiguous to that county.
A taxpayer may determine whether exceptional, extreme, or severe drought is reported for any location in the applicable region by reference to U.S. Drought Monitor maps that are produced on a weekly basis by the National Drought Mitigation Center. U.S. Drought Monitor maps are archived at
In addition, Notice 2006-82 provides that the Internal Revenue Service will publish in September of each year a list of counties, districts, cities, parishes, or municipalities (hereinafter “counties”) for which exceptional, extreme, or severe drought was reported during the preceding 12 months. Taxpayers may use this list instead of U.S. Drought Monitor maps to determine whether exceptional, extreme, or severe drought has been reported for any location in the applicable region.
The Appendix to this notice contains the list of counties for which exceptional, extreme, or severe drought was reported during the 12-month period ending August 31, 2016. Under Notice 2006-82, the 12-month period ending on August 31, 2016, is not a drought-free year for an applicable region that includes any county on this list. Accordingly, for a taxpayer who qualified for a four-year replacement period for livestock sold or exchanged on account of drought and whose replacement period is scheduled to expire at the end of 2016 (or, in the case of a fiscal year taxpayer, at the end of the taxable year that includes August 31, 2016), the replacement period will be extended under §1033(e)(2) and Notice 2006-82 if the applicable region includes any county on this list. This extension will continue until the end of the taxpayer's first taxable year ending after a drought-free year for the applicable region.
The principal author of this notice is Renay France of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this notice, please contact Ms. France at (202) 317-4893 (not a toll-free call).
Counties of Baldwin, Bibb, Blount, Calhoun, Chambers, Cherokee, Clay, Cleburne, Colbert, Coosa, Cullman, DeKalb, Elmore, Etowah, Fayette, Franklin, Jackson, Jefferson, Lamar, Lauderdale, Lawrence, Lee, Limestone, Macon, Madison, Marion, Marshall, Morgan, Pickens, Randolph, Russell, Saint Clair, Shelby, Talladega, Tallapoosa, Tuscaloosa, and Walker.
Counties of Apache, Cochise, Gila, Graham, Greenlee, La Paz, Maricopa, Navajo, Pima, Pinal, Santa Cruz, and Yuma.
Counties of Arkansas, Ashley, Bradley, Calhoun, Chicot, Clark, Cleveland, Columbia, Dallas, Desha, Drew, Faulkner, Garland, Grant, Hempstead, Hot Spring, Howard, Jefferson, Lafayette, Lee, Lincoln, Little River, Lonoke, Miller, Monroe, Montgomery, Nevada, Ouachita, Perry, Phillips, Pike, Polk, Prairie, Pulaski, Saline, Scott, Sevier, Union, and Yell.
Counties of Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Orange, Placer, Plumas, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, Yolo, and Yuba.
County of Baca.
Counties of Hartford, Litchfield, Tolland, and Windham.
Counties of Broward, Collier, Escambia, Miami-Dade, Monroe, and Palm Beach.
Counties of Baldwin, Banks, Barrow, Bartow, Bibb, Bleckley, Bulloch, Burke, Butts, Candler, Carroll, Catoosa, Chattooga, Cherokee, Clarke, Clayton, Cobb, Coweta, Crawford, Dade, Dawson, DeKalb, Douglas, Effingham, Elbert, Emanuel, Fannin, Fayette, Floyd, Forsyth, Franklin, Fulton, Gilmer, Gordon, Greene, Gwinnett, Habersham, Hall, Haralson, Harris, Hart, Heard, Henry, Houston, Jackson, Jasper, Jenkins, Lamar, Laurens, Lincoln, Lumpkin, Madison, Meriwether, Monroe, Morgan, Murray, Muscogee, Newton, Oconee, Oglethorpe, Paulding, Peach, Pickens, Pike, Polk, Pulaski, Putnam, Rabun, Rockdale, Screven, Spalding, Stephens, Talbot, Taliaferro, Towns, Troup, Twiggs, Union, Upson, Walker, Walton, Washington, White, Whitfield, Wilkes, and Wilkinson.
Counties of Hawaii, Kauai, and Maui.
Counties of Adams, Benewah, Blaine, Boise, Bonner, Boundary, Butte, Camas, Canyon, Clark, Clearwater, Custer, Elmore, Fremont, Gem, Gooding, Idaho, Jefferson, Jerome, Kootenai, Latah, Lemhi, Lewis, Lincoln, Minidoka, Nez Perce, Owyhee, Payette, Shoshone, Twin Falls, Valley, and Washington.
Counties of Barber, Comanche, and Morton.
Parishes of Acadia, Allen, Ascension, Assumption, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Catahoula, Claiborne, Concordia, De Soto, East Baton Rouge, East Carroll, East Feliciana, Evangeline, Franklin, Grant, Iberia, Iberville, Jackson, Jefferson Davis, Jefferson, La Salle, Lafayette, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Ouachita, Pointe Coupee, Rapides, Red River, Richland, Sabine, Saint Charles, Saint Helena, Saint James, Saint John the Baptist, Saint Landry, Saint Martin, Saint Tammany, Tangipahoa, Tensas, Union, Vermilion, Vernon, Washington, Webster, West Baton Rouge, West Carroll, West Feliciana, and Winn.
Counties of Androscoggin, Cumberland, Kennebec, Knox, Lincoln, Sagadahoc, and York.
Counties of Barnstable, Bristol, Essex, Franklin, Hampden, Hampshire, Middlesex, Norfolk, Plymouth, Suffolk, and Worcester.
Counties of Genesee, Shiawassee, and Wayne.
Counties of Big Stone, Douglas, Grant, Otter Tail, Traverse, and Wilkin.
Counties of Adams, Amite, Attala, Bolivar, Calhoun, Carroll, Chickasaw, Choctaw, Claiborne, Clay, Coahoma, Copiah, Covington, Forrest, Franklin, Grenada, Hinds, Holmes, Humphreys, Issaquena, Itawamba, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lafayette, Lamar, Lauderdale, Lawrence, Leake, Lee, Leflore, Lincoln, Lowndes, Madison, Marion, Monroe, Montgomery, Neshoba, Newton, Noxubee, Oktibbeha, Panola, Pearl River, Pike, Pontotoc, Prentiss, Quitman, Rankin, Scott, Sharkey, Simpson, Smith, Stone, Sunflower, Tallahatchie, Tishomingo, Tunica, Union, Walthall, Warren, Washington, Webster, Wilkinson, Winston, Yalobusha, and Yazoo.
Counties of Beaverhead, Big Horn, Broadwater, Carbon, Carter, Cascade, Deer Lodge, Fallon, Flathead, Gallatin, Glacier, Granite, Jefferson, Lake, Lewis and Clark, Lincoln, Madison, Mineral, Missoula, Park, Pondera, Powder River, Powell, Ravalli, Sanders, Silver Bow, Stillwater, Sweet Grass, Teton, Toole, and Yellowstone.
Counties of Adams, Clay, Franklin, Kearney, and Webster.
Counties of Carson City, Churchill, Clark, Douglas, Elko, Esmeralda, Eureka, Humboldt, Lander, Lincoln, Lyon, Mineral, Nye, Pershing, Storey, Washoe, and White Pine.
New Hampshire
Counties of Belknap, Cheshire, Hillsborough, Merrimack, Rockingham, and Strafford.
New Mexico
Counties of Lea, Roosevelt, and Union.
New York
Counties of Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Cortland, Erie, Genesee, Jefferson, Lewis, Livingston, Monroe, Niagara, Onondaga, Ontario, Orleans Oswego, Schuyler, Seneca, Steuben, Suffolk, Tioga, Tompkins, Wayne, Wyoming, and Yates.
North Carolina
Counties of Alexander, Buncombe, Burke, Caldwell, Catawba, Cherokee, Clay, Cleveland, Gaston, Graham, Haywood, Henderson, Iredell, Jackson, Lincoln, Macon, Madison, McDowell, Mecklenburg, Polk, Rutherford, Swain, Transylvania, Union, and Yancey.
North Dakota
Counties of Bowman, Richland, and Slope.
Counties of Allen, Ashland, Auglaize, Champaign, Clark, Crawford, Cuyahoga, Erie, Geauga, Hancock, Hardin, Holmes, Huron, Lake, Logan, Lorain, Madison, Marion, Mercer, Miami, Morrow, Richland, Seneca, Shelby, Union, Van Wert, Wayne, Wood, and Wyandot.
Counties of Atoka, Beckham, Bryan, Carter, Cherokee, Choctaw, Cimarron, Comanche, Cotton, Ellis, Garvin, Greer, Harmon, Harper, Jackson, Jefferson, Johnston, Kiowa, Le Flore, Love, Marshall, McCurtain, Murray, Muskogee, Pontotoc, Pushmataha, Roger Mills, Stephens, Texas, Tillman, Wagoner, Woods, and Woodward.
Counties of Baker, Benton, Clackamas, Clatsop, Columbia, Coos, Crook, Curry, Deschutes, Douglas, Gilliam, Grant, Harney, Hood River, Jackson, Jefferson, Josephine, Klamath, Lake, Lane, Lincoln, Linn, Malheur, Marion, Morrow, Multnomah, Polk, Sherman, Tillamook, Umatilla, Union, Wallowa, Wasco, Washington, Wheeler, and Yamhill.
Counties of Bradford, Cameron, Centre, Clearfield, Clinton, Elk, Erie, Lycoming, McKean, Potter, Susquehanna, and Tioga.
Puerto Rico
Municipios (municipalities) of Aguas Buenas, Aibonito, Arroyo, Barranquitas, Bayamon, Caguas, Canovanas, Carolina, Catano, Cayey, Ceiba, Cidra, Coamo, Comerio, Corozal, Culebra, Dorado, Fajardo, Guayama, Guaynabo, Gurabo, Humacao, Juncos, Las Piedras, Loiza, Luquillo, Manati, Maunabo, Morovis, Naguabo, Naranjito, Orocovis, Patillas, Rio Grande, Salinas, San Juan, San Lorenzo, Santa Isabel, Toa Alta, Toa Baja, Trujillo Alto, Vega Alta, Vega Baja, Vieques, and Yabucoa.
Rhode Island
County of Providence.
South Carolina
Counties of Abbeville, Allendale, Anderson, Bamberg, Barnwell, Berkeley, Calhoun, Cherokee, Chester, Chesterfield, Clarendon, Colleton, Darlington, Dorchester, Edgefield, Fairfield, Florence, Greenville, Greenwood, Hampton, Jasper, Kershaw, Lancaster, Lee, Lexington, McCormick, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Sumter, Union, Williamsburg, and York.
South Dakota
Counties of Butte, Custer, Fall River, Harding, Lawrence, Meade, Pennington, Perkins, and Roberts.
Counties of Bedford, Bledsoe, Blount, Bradley, Coffee, Cumberland, Franklin, Giles, Grundy, Hamilton, Hardin, Lawrence, Lincoln, Loudon, Marion, Marshall, Maury, McMinn, Meigs, Monroe, Moore, Polk, Rhea, Roane, Sequatchie, Van Buren, and Warren.
Counties of Anderson, Angelina, Archer, Atascosa, Bandera, Bastrop, Baylor, Bell, Bexar, Blanco, Bosque, Bowie, Brazos, Brown, Burleson, Burnet, Caldwell, Callahan, Camp, Cass, Castro, Cherokee, Childress, Clay, Cochran, Coke, Coleman, Collin, Comal, Comanche, Concho, Cooke, Coryell, Cottle, Crosby, Dallas, Deaf Smith, Delta, Denton, DeWitt, Dickens, Dimmit, Eastland, Ellis, Erath, Falls, Fannin, Fayette, Fisher, Floyd, Foard, Franklin, Freestone, Frio, Garza, Gillespie, Gonzales, Grayson, Gregg, Grimes, Guadalupe, Hale, Hamilton, Hardeman, Harrison, Haskell, Hays, Hemphill, Henderson, Hill, Hockley, Hood, Hopkins, Houston, Hunt, Jack, Jasper, Johnson, Jones, Karnes, Kaufman, Kendall, Kent, Kerr, Kimble, King, Kinney, Kleberg, Knox, La Salle, Lamar, Lampasas, Lavaca, Lee, Leon, Limestone, Lipscomb, Live Oak, Llano, Lubbock, Madison, Marion, Mason, Maverick, McCulloch, McLennan, McMullen, Medina, Menard, Milam, Mills, Mitchell, Montague, Montgomery, Morris, Motley, Nacogdoches, Navarro, Newton, Nolan, Nueces, Palo Pinto, Panola, Parker, Polk, Rains, Red River, Robertson, Rockwall, Runnels, Rusk, Sabine, San Augustine, San Jacinto, San Patricio, San Saba, Schleicher, Scurry, Shackelford, Shelby, Smith, Somervell, Stephens, Sterling, Stonewall, Sutton, Tarrant, Taylor, Terrell, Terry, Throckmorton, Titus, Tom Green, Travis, Trinity, Tyler, Upshur, Uvalde, Val Verde, Van Zandt, Walker, Washington, Webb, Wheeler, Wichita, Wilbarger, Williamson, Wilson, Wise, Wood, Yoakum, Young, and Zavala.
Counties of Beaver, Box Elder, Carbon, Davis, Duchesne, Juab, Millard, Piute, Salt Lake, Sanpete, Sevier, Summit, Tooele, Utah, Wasatch, and Weber.
Counties of Adams, Asotin, Benton, Chelan, Clallam, Clark, Columbia, Cowlitz, Douglas, Ferry, Franklin, Garfield, Grant, Grays Harbor, Island, Jefferson, King, Kitsap, Kittitas, Klickitat, Lewis, Lincoln, Mason, Okanogan, Pacific, Pend Oreille, Pierce, San Juan, Skagit, Skamania, Snohomish, Spokane, Stevens, Thurston, Wahkiakum, Walla Walla, Whatcom, Whitman, and Yakima.
Counties of Big Horn, Campbell, Converse, Crook, Johnson, Natrona, Niobrara, Park, Sheridan, Teton, Washakie, and Weston.

JOHN TRAPANI, CPA assists both taxpayers directly and
advises taxpayers’ tax professionals.

This material was contributed by John Trapani. A Certified Public Accountant who has assisted taxpayers since 1976, in analyzing and reporting transactions of the type covered in this material.  
© 2016, John Trapani, CPA,
All rights to reproduce or quote any part of the chapter in any other publication are reserved by the author. Republication rights limited by the publisher of the book in which this chapter appears also apply.

Certified Public Accountant
2975 E. Hillcrest Drive, #403
Thousand Oaks, CA 91362
(805) 497-4411       E-mail
It All Adds Up For You

Unless otherwise stated the following statement applies to content specified below:
Any accounting, business or tax advice contained in this communication, is not intended as a thorough, in-depth analysis of a specific issue, nor a substitute for a formal opinion, nor can it be considered sufficient to avoid tax-related penalties. If desired, John Trapani, CPA  would be pleased to perform the requisite complete research and provide with a detailed written analysis.
This material was completed on the date of the posting