What's New—Disaster Areas(p1)

The following tax benefits are available for qualifying Schedule C filers in the Kansas and Midwestern disaster areas.

• Employee retention credit for  
  employers.
• Deduction for qualified demolition and clean-up costs.
• Increased section 179 deduction for qualified property.
• Special depreciation allowance for qualified property.

For information about these benefits, see:

• Pub. 4492-A, Information for Taxpayers Affected by the May 4, 2007, Kansas Storms and Tornadoes; and
• Pub. 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas.

To claim a refund if you have already filed your 2007 tax return and have qualifying expenses for that year, file an amended return on Form 1040X, Amended U.S. Individual Income Tax Return, except as otherwise provided in Notice 2008-67. This notice is found on page 307 of Internal Revenue Bulletin 2008-32 at  
www.irs.gov/irb/2008-32_irb/ar14.html.

The following tax benefits are available for qualifying Schedule C filers affected by federally declared disasters occurring after December 31, 2007, and before January 1, 2010.

• Deduction for qualified demolition and clean-up costs (see Pub. 535).
• Increased section 179 deduction for qualified property (see Pub. 946).
• Special depreciation allowance for qualified property (see Pub. 946).

For a list of designated counties in federally declared disaster areas go to  
www.fema.gov/news/disasters.fema.