Victims of severe storms, straight-line winds, and flooding that began on April 16 in parts of Illinois may qualify for tax relief.

President Obama has declared Cook, DeKalb, DuPage, Fulton, Grundy, Kane, Kendall, Lake, LaSalle, McHenry and Will counties a federal disaster area. The IRS said the declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area.

For instance, certain deadlines falling on or after April 16 and on or before July 1 have been postponed to July 1, including the June 17 deadline for second-quarter estimated tax payments. The IRS is also waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after April 16 and on or before May 1, as long as the deposits are made by May 1.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at (866) 562-5227 to request this tax relief.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access