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| Domenici & Wilson Ask IRS To “Play Fair” With Cerro Grande Fire Victims |
March 05, 2001 |
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Lawmakers Demand Answers as April 15 Rapidly Approaches
WASHINGTON -- With tax day rapidly approaching, Senator Pete Domenici and Congresswoman Heather Wilson are demanding that the IRS “play fair” with Cerro Grande Fire victims who still have not been told how government compensation will affect their tax filings.
In a letter to Charles Rossotti, commissioner of the Internal Revenue Service, Domenici and Wilson called on the agency to resolve questions swirling around victim’s claims payments and how the IRS will treat them on tax day.
“It’s tax season, and there are hundreds of people in our home state of New Mexico who are waiting to file their taxes because they need information about how to characterize federal government compensation for the May 2000 Cerro Grande Fire,” Domenici and Wilson wrote.
“Commissioner Rossotti, the Internal Revenue Service is not playing fair. Although very clear about its tax filing deadlines and penalties for noncompliance, the IRS is not extending the same courtesy it requires. How can taxpayers meet deadlines when they lack information the IRS must provide?” the lawmakers questioned.
At issue, the lawmakers said, are several unresolved questions regarding compensation resulting from the blaze sparked by the federal government last year. The Federal Emergency Management Agency (FEMA) has issued and will continue to issue hundreds of payments in response to filed claims for compensation.
Domenici and Wilson said in spite of repeated requests from the New Mexico congressional delegation, the IRS has still not issued a written decision resolving the questions.
“As the April tax-filing deadline quickly approaches, taxpayers need to know what portions of the compensation they receive are taxable and how that will be determined. People lost their homes and businesses, and places of worship were devastated,” they wrote. “These people deserve answers now.”
Last year in New Mexico, the National Park Service began a forest-thinning prescribed burn in Bandelier National Monument that raged out of control and burned over 400 homes and businesses in the Los Alamos area. Domenici and Wilson were instrumental in passing legislation that was signed into law on July 13, 2000. This legislation made up to $455 million available to fire victims so they would be quickly compensated for their losses and could begin rebuilding their lives.
Last week, Domenici gained a commitment from Mitch Daniels, director of the Office of Management and Budget, that the administration will not act on a recommended $150 million cut to the fire compensation fund. Domenici secured the commitment during a Senate Budget Committee hearing on the President’s FY 2002 budget at which Daniels was testifying.
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