PARSIPPANY, N.J., Aug. 16,2006 - Each year, millions of Americans face sudden and sometimes catastrophic losses due to natural disasters. To help taxpayers better prepare for and effectively cope with the unexpected, Jackson Hewitt Tax Service, the nation's second largest tax preparation service, announces the availability of an online "Disaster Relief Kit" featuring enhancements to the company's extensive natural disaster and casualty loss resources.

 

Through the site, taxpayers who have experienced a disastrous event -- as well as those who want to be better prepared -- can quickly and easily access tips and planning tools on what to do before and after a disaster. Included is guidance on:

"The annual hurricane season is underway, and we have already seen significant flooding along the East Coast and wildfires in the West," said Michael Lister, President and Chief Executive Officer, Jackson Hewitt Tax Service Inc. "While weather patterns and disasters are unpredictable, being as prepared as possible and understanding certain tax benefits can help speed relief if an emergency occurs. By offering our Disaster Relief Kit on our Web site and providing our tax preparers with extensive training on these issues, Jackson Hewitt hopes to help individuals who face these unfortunate hardships."

 

There are several precautionary steps that can be taken by taxpayers in all parts of the country before a disaster strikes. For example, making sure that home and auto insurance policies are up-to-date with proper appraisals and having the home and its contents insured for 100 percent of current replacement value can greatly help with recovery costs.

 

When property has been lost suddenly, there is often confusion about what items can be deducted in a tax loss claim. In many cases, taxpayers overlook basic household items, such as pots and pans, appliances, linens, tools, refrigerated or frozen food that has spoiled, wall fixtures and even holiday decorations - all of which can be legitimately deducted as part of a casualty loss claim. Keeping an inventory, via videos or photos, of the home and its contents will help taxpayers make a speedy, accurate claim. Jackson Hewitt's online Home Inventory Check List, available in the Disaster Relief Kit, provides a simple way to record possessions.

 

The person making the claim must also prove that he or she owns the property in question or is the person responsible to the owner for any damages. One way to verify ownership is by making copies of legal and financial documents and storing them in a secure location outside the home, such as at a bank or other institution that provides safe deposit boxes.

 

It is also important to know the tax basis of a home, or the amount of an investment in a property for tax purposes. "Ultimately, the taxpayer has the burden of proving to the IRS the amount he or she claims as a loss on a tax return, which affects how much can be deducted," notes Mark Steber, Vice President, Tax Resources for Jackson Hewitt. "People should be prepared to provide the IRS with home-related documentation like a Bill of Sale, HUD-1 Settlement Statement, or receipts for any major home improvements. A knowledgeable tax preparer can provide guidance on supporting materials needed to prove tax basis or to help those affected claim disaster-related losses."

 

Jackson Hewitt tax professionals are well-trained on tax ramifications of disasters, including claiming losses and other key issues. Because educational materials are updated often to keep preparers advised on the latest Presidentially-declared disaster areas, Jackson Hewitt can make tax changes and relevant forms available to all customers in a timely manner.

 

Through Jackson Hewitt's electronic capabilities, taxpayers in all parts of the country can access and download most Form W-2s, one of the key documents needed to complete a tax return. If taxpayers are displaced due to a disaster, or if they have moved and are concerned that their employer does not have the right forwarding address, the professional preparers at Jackson Hewitt can retrieve this information and help to prepare a return faster.

 

"Although repairing or replacing the damaged property is often the primary concern, claiming the loss for tax purposes is a critical step in restoring one's financial health after a disaster," notes Steber. "Through the online Disaster Relief Kit, access to skilled, informed tax professionals, our W2 download capabilities and more, Jackson Hewitt is continuing to find ways to help taxpayers understand and take full advantage of all of the tax information and benefits available to them."

 

Information on Disaster and Casualty loss and the Disaster Relief Kit is available in the Tax Resource Center of the Jackson Hewitt Web site at http://www.jacksonhewitt.com. Feel free to 'click on' the convenient link located on the home page.  

 

Jackson Hewitt Tax Service Inc. (NYSE: JTX), with over 6,000 franchised and company-owned offices throughout the United States during the 2006 tax season, is an industry leader providing full service individual federal and state income tax preparation. Most offices are independently owned and operated. The Company is based in Parsippany, New Jersey. More information may be obtained at http://www.jacksonhewitt.com. To locate the Jackson Hewitt Tax Service office nearest to you, call 1-800-234-1040.

 

Allison Jackson

Senior Manager, Communications

Jackson Hewitt Tax Service Inc.

973-630-0681

allison.jackson@jtax.com 

 

Melissa Connerton

CooperKatz & Company

212-455-8001

mconnerton@cooperkatz.com 

 

Jackson Hewitt Tax Service Inc.