Updated 6/28/11 to include Wabash county.
IL-2011-29, June 8, 2011
CHICAGO — Victims of severe storms and flooding beginning April 19,
2011 in parts of Illinois may qualify for tax relief from the Internal
The President has declared the following counties a federal disaster
area: Alexander, Franklin, Gallatin, Hardin, Jackson, Lawrence, Massac,
Perry, Pope, Pulaski, Randolph, Saline, Wabash, White and Williamson
counties. 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 April 19 and on or
before June 30 have been postponed to June 30. This includes the
estimated tax payment for the second quarter of 2011 normally due June
In addition, the IRS is waiving the failure-to-deposit penalties for
employment and excise tax deposits due on or after April 19 and on or
before May 4, 2011, as long as the deposits were made by May 4, 2011.
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.
Covered Disaster Area
The counties listed above constitute a covered disaster area for
purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the
relief detailed below.
Taxpayers considered to be affected taxpayers eligible for the
postponement of time to file returns, pay taxes and perform other
time-sensitive acts are those taxpayers listed in Treas. Reg. §
301.7508A-1(d)(1), and include individuals who live, and businesses
whose principal place of business is located, in the covered disaster
area. Taxpayers not in the covered disaster area, but whose records
necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are
in the covered disaster area, are also entitled to relief. In addition,
all relief workers affiliated with a recognized government or
philanthropic organization assisting in the relief activities in the
covered disaster area and any individual visiting the covered disaster
area who was killed or injured as a result of the disaster are entitled
Grant of Relief
Under section 7508A, the IRS gives affected taxpayers until June 30
to file most tax returns (including individual, corporate, and estate
and trust income tax returns; partnership returns, S corporation
returns, and trust returns; estate, gift, and generation-skipping
transfer tax returns; and employment and certain excise tax returns), or
to make tax payments, including estimated tax payments, that have
either an original or extended due date occurring on or after April 19
and on or before June 30.
The IRS also gives affected taxpayers until June 30 to perform other
time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and
Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (August 20, 2007), that are due
to be performed on or after April 19 and on or before June 30.
This relief also includes the filing of Form 5500 series returns, in
the manner described in section 8 of Rev. Proc. 2007-56. The relief
described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind
exchanges of property, also applies to certain taxpayers who are not
otherwise affected taxpayers and may include acts required to be
performed before or after the period above.
The postponement of time to file and pay does not apply to
information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or
8027. Penalties for failure to timely file information returns can be
waived under existing procedures for reasonable cause. Likewise, the
postponement does not apply to employment and excise tax deposits. The
IRS, however, will abate penalties for failure to make timely employment
and excise tax deposits due on or after April 19 and on or before May 4
provided the taxpayer made these deposits by May 4.
Affected taxpayers in a federally declared disaster area have the
option of claiming disaster-related casualty losses on their federal
income tax return for either this year or last year. Claiming the loss
on an original or amended return for last year will get the taxpayer an
earlier refund, but waiting to claim the loss on this year’s return
could result in a greater tax saving, depending on other income factors.
Individuals may deduct personal property losses that are not covered
by insurance or other reimbursements. For details, see Form 4684 and its
Affected taxpayers claiming the disaster loss on last year’s return
should put the Disaster Designation “Illinois/Severe Storms and
Flooding” at the top of the form so that the IRS can expedite the
processing of the refund.
The IRS will waive the usual fees and expedite requests for copies of
previously filed tax returns for affected taxpayers. Taxpayers should
put the assigned Disaster Designation in red ink at the top of Form
4506, Request for Copy of Tax Return, or Form 4506-T, Request for
Transcript of Tax Return, as appropriate, and submit it to the IRS.
Affected taxpayers who are contacted by the IRS on a collection or
examination matter should explain how the disaster impacts them so that
the IRS can provide appropriate consideration to their case.
Taxpayers may download forms and publications from the official IRS
Web site, irs.gov, or order them by calling 1-800-TAX-FORM
(1-800-829-3676). The IRS toll-free number for general tax questions is