Casualty Losses

Casualty and theft losses and some miscellaneous deductions are beyond the scope of VITA/TCE. (Ref IRS Pub 4012, page F-3.)

However, it may be beneficial to discuss with the taxpayer the value of the loss compared with the cost of paying someone else to prepare his/her tax return. If the loss is the same or less than the tax preparation fee, it would make sense for the taxpayer ignore the loss and have us prepare the return for free.

Use the Casualty Loss Screening Tool for more tips to help the taxpayer deal with the loss.