Illinois Victims of Severe Storms and Flooding Get Tax Relief

The IRS has provided tax relief to victims of severe storms and flooding that began in Illinois on June 29, 2023. These taxpayers now have until October 31, 2023, to file various individual and business tax returns and to make certain tax payments. (IL-2023-06, 8/16/2023)

Disaster area.

Taxpayers that reside or have a business in Cook County qualify for this relief.

Postponement period.

This tax relief postpones filing and payment deadlines that were originally due between June 29, 2023, and October 31, 2023, to October 31, 2023. The postponement includes:

• Individual income tax returns due on October 16, 2023
• Quarterly estimated tax payments normally due on or after June 29, 2023, and before October 31, 2023
• Calendar-year partnership and S corporation returns with 2022 extensions to September 15, 2023
• Calendar-year corporations with 2022 extensions to October 16, 2023
• Form 5500 series returns that were required to be filed on or after June 29, 2023, and before October 31, 2023

Note. Information on other returns and payments that qualify for postponement can be found on IRS.gov.

Automatic relief.

The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. Affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hot line at 866-562-5227 to request this tax relief.

A taxpayer qualifying for this relief who receives a penalty notice for a return or payment due during the postponement period should call the telephone number on the notice to have the IRS abate the penalty.

Casualty losses.

Taxpayers claiming casualty losses from a federally declared disaster may claim those losses on their federal income tax return for either the year the event occurred (in this case the 2023 return due in April 2024) or the prior year (2022) income tax return due in October 2023. Individuals may only deduct personal property losses that are not covered by insurance or other reimbursements. Affected taxpayers claiming the disaster loss on their return should write the Disaster Designation, “Illinois, Severe Storms and Flooding,” and FEMA disaster declaration number, DR-4728-IL on any return.

Other relief.

The IRS will provide copies of previously filed tax returns to affected taxpayers for free. Taxpayers should put the assigned Disaster Designation, “Illinois severe storms and flooding” and FEMA number “DR-4728-IL,” in bold letters at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, 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.

For more information about deducting casualty losses incurred during a federally declared disaster, see Checkpoint’s Federal Tax Coordinator ¶ M-2000 et seq.