August 2010

Tax Relief for Victims of July 22 Storms in Illinois

From irs.gov.

IL-2010-34, Aug. 20, 2010

WASHINGTON — Victims of severe storms and flooding beginning July 22 in parts of Illinois may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Carroll, Cook, DuPage, Jo Daviess, Ogle, Stephenson and Winnebago. Individuals who reside or have a business in these counties may qualify for tax relief.

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 July 22 and on or before Sept. 20 have been postponed retroactively to Sept. 20.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise deposits due on or after July 22 and on or before Aug. 6, as long as the deposits were made by Aug. 6.

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 1-866-562-5227 to request this tax relief.

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