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Level 4
01-04-2023
08:07 PM
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Normally, where there is a conflict between state rules and federal rules, I would think state rules prevail. In the case of CoVID-19 as a qualified disaster for the purpose of Sec.139 Qualified Disaster Reimbursement Deduction, which jurisdiction should the taxpayers follow if state and federal opinions differ?
See FEMA website showing each state lifted CoVID-19 disaster in 2020 and 2021:
See President Biden issued "Notice on the Continuation of the National Emergency Concerning the Coronavirus Disease 2019 (CoVID-19) Pandemic" on February 18, 2022, stating "...the national emergency declared on March 13, 2020, and beginning March 1, 2020, must continue in effect beyond March 1, 2022".
Section 139(c) stated: the qualified disaster is a federally declared disaster defined in Sec.165(i)(5). If you trace the definition to Sec. 165(i)(5), a Qualified Disaster not only has to be declared at the Federal Level, but also needs to be declared by the President of the United States, to budget disaster relief funds. And, it did happen that some state, for example Colorado, who lifted the COVID-19 disaster on 06/07/2021, but did received additional FEMA funding in 2022:
Is it correct to understand, even state filed closing date of CoVID-19 disaster with FEMA in 2021, but on 02/18/2022, President Biden declared continuation of the CoVID-19 disaster again to allocate FEMA COVID-19 funds….does this made CoVID-19 a qualified disaster in 2022 again for the purpose of Section 139?
