Taxpayers affected by the April 16, 2013 storms, flooding and wind damage that ravaged parts of Illinois may qualify for tax relief. This includes postponement by the IRS of certain taxpayer deadlines until July 1, 2013 as well as abatement of interest, late filing, or late payment penalties for those that qualify.
Automatic filing and payment relief apply to taxpayers that live or have a business in specific Illinois counties (Cook, DeKalb, DuPage, Fulton, Grundy, Kane, Kendall, Lake, LaSalle, McHenry and Will) that were Presidentially-declared disaster areas. Other affected taxpayers outside of the covered disaster areas should call the IRS disaster hotline (866-562-5227) to request relief.
Note that the July 1, 2013 postponement date applies to certain deadlines that occur on or after April 16 and on or before July 1, such as the June 17 due date for making second quarter estimated tax payments.
In addition, abatement of penalties and interest will only be considered for affected taxpayers with an original or extended filing, payment, or deposit due date that occurs within the postponement period.
Keep in mind that disaster-related casualty losses can be claimed on either the current year’s tax return or by amending the prior year’s tax return. Taxpayers should review their specific situation to determine which option is best for them.
Additional details can be found in the recent IRS news release.