IRS gives further relief to taxpayers affected by Sandy

The IRS also said this assistance would be provided automatically, and that it would offer assistance on any interest or penalty that those taxpayers might face.

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In a separate announcement, the tax-collecting agency also said that a taxpayer could exclude so-called qualified disaster relief payments from their taxable income. Those payments can include money used to take care of certain expenses that insurance would not cover, such as funerals and personal or living expenses.