No Flood Insurance...No Problem (Claim Losses In Your TAXES...READ PLEASE)

News Release

For Further Information

Ronald Richey, 615-902-6208 ex.230 ronald.richey@hrblock.com

Financial Recovery Following Natural Disasters - What You Don’t Know Could Cost You

Act now to understand tax implications

For Immediate Release May 11, 2010

(Nashville, TN) – Hurricanes. Fires. Floods. Tornadoes. Mudslides. During a natural disaster, people worry first about their families and safety, then about their homes and other belongings. Once the disaster subsides, the rebuilding of everyday lives, and the property that has been damaged or destroyed, begins. Stephanie Western of H&R Block recalls the impact that the flooding in the Nashville and Middle Tennessee area.

“When you are picking up the pieces of your life, sometimes quite literally,” Stephanie said, “You need to know just what you can do to claim your losses, receive funds quickly and get on with rebuilding. You also need to know that your tax or financial advisor should be able to answer these questions.”

But where should impacted taxpayers begin?

Filing a Casualty Loss Claim

Typically tax filers must claim a casualty loss on their federal return in the year the loss occurs. However, if the president declares the area a federal disaster, impacted taxpayers can file amended returns and claim the losses on their prior years’ tax returns. This enables disaster victims to recoup their losses more quickly.

Calculating a casualty loss on a prior year or this year’s return, however, can be a confusing process and the best advice is to contact your tax professional immediately for assistance.

For example, any personal property losses not covered by insurance or other reimbursements may be deducted. But, you must first subtract $100 for each casualty event and then subtract 10 percent of your adjusted gross income from your total casualty losses for the year. Sometimes, waiting to claim the loss on this year’s return, rather than filing an amended prior year return, can result in a greater tax savings. Taxpayers should ask a tax professional for assistance in choosing the best option for them.

Tax Filing Relief

Following a presidentially declared disaster, the IRS generally grants late filing relief to affected taxpayers. This means the IRS will not assess penalties or interest if tax returns are filed and other obligations are performed within a specified date. You may be an affected taxpayer if you live, work, or have financial records located in a federal disaster area, or if you are a qualified relief worker assisting in the disaster area.

Victims of severe storms, flooding, straight-line winds and tornadoes beginning April 30 in Tennessee may qualify for tax relief from the Internal Revenue Service. The President has declared Benton, Carroll, Cheatham, Chester, Clay, Crockett, Davidson, Decatur, DeKalb, Dickson, Dyer, Fayette, Gibson, Hardeman, Hardin, Haywood, Henderson, Hickman, Houston, Humphreys, Jackson, Lauderdale, Lawrence, Lewis, Macon, Madison, Maury, Montgomery, Obion, Robertson, Rutherford, Smith, Stewart, Sumner, Trousdale, Wayne, Williamson and Wilson counties disaster areas qualifying for individual assistance.

As a result, the IRS is postponing tax filing, payments and certain other deadlines until June 29 for taxpayers who reside or have a business in the disaster area. In addition, the IRS will waive the failure to deposit penalties for employment and excise deposits due on or after April 30 and on or before May 17, as long as the deposits are made by May 17. For more information, go to www.irs.gov and click on “Newsroom>Tax Relief” link or contact H&R Block.

Be Prepared Before Disaster Strikes

It’s just as important to be prepared before a potential disaster strikes, Stephanie indicated.

“Most of us want to believe a natural disaster or national emergency will never happen to us,” Stephanie said. “But the simple truth is that a disaster can strike at any time, anywhere and affect anyone.”

To help minimize the financial impact of a natural disaster, taxpayers should complete the Personal Disaster Preparedness Guide and the Emergency Financial First Aid Kit ; two free, simple tools from Operation HOPE, America’s non-profit leader in providing financial literacy and economic empowerment programs. The forms are available at www.operationhope.org and click on the EFFAK logo on the left hand side.

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About H&R Block

H&R Block Inc. (NYSE: HRB) is the world’s preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 120,000 highly trained tax professionals. The Company provides tax return preparation services in person, through H&R Block At Home™ online and desktop software products, and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information, visit our Online Press Center at www.hrblock.com.