IRS announces tax relief for Illinois storm victims with extended deadlines
Disaster tax relief for Illinois storm victims
The IRS has announced a new tax relief initiative for individuals and businesses impacted by the severe storms, tornadoes, straight-line winds, and flooding that struck parts of Illinois beginning on July 13, 2024.
Under this relief program, affected taxpayers will now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments.
This relief is available to any area designated by the Federal Emergency Management Agency (FEMA), which currently includes Cook, Fulton, Henry, St. Clair, Washington, Will, and Winnebago counties.
The IRS may extend relief to additional counties as damage assessments continue. Affected taxpayers can find an updated list of eligible localities on the Tax Relief in Disaster Situations page on IRS.gov.
Filing and payment extensions
Several tax filing and payment deadlines that fall within the relief period (July 13, 2024, to February 3, 2025) have been extended. Affected individuals and businesses will have additional time to meet their tax obligations.
The key deadlines that have been extended include:
- Individual and business tax returns: Applicable to those with a valid extension to file their 2023 federal returns. Note that payments originally due before the storms are not eligible for this extension.
- Quarterly estimated tax payments: Due dates for payments originally set for September 16, 2024, and January 15, 2025, have been moved to February 3, 2025.
- Quarterly payroll and excise tax returns: Deadlines for filings typically due on July 31, October 31, 2024, and January 31, 2025, are now postponed to February 3, 2025.
- Penalty relief for payroll and excise tax deposits: Penalties on deposits due on or after July 13, 2024, and before July 29, 2024, will be abated as long as the deposits were made by July 29, 2024.
Special considerations for relief eligibility
The IRS will automatically provide filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area.
Taxpayers do not need to take additional steps to receive this relief. However, if your tax records are located in the affected area but your address of record is not, you may still qualify for relief. In such cases, you should contact the IRS Disaster Assistance Hotline at 866-562-5227 to request penalty abatement.
Additionally, taxpayers living outside the designated disaster area but whose records necessary to meet a deadline are within the affected area should also reach out to the IRS for assistance. This includes workers affiliated with recognized government or philanthropic organizations involved in disaster relief efforts in the affected areas.
Additional tax relief for disaster victims
For those in federally declared disaster areas, additional tax provisions are available:
- Claiming disaster-related losses: Taxpayers can claim uninsured or unreimbursed disaster-related losses on either their 2024 return or their 2023 return. Be sure to include the FEMA declaration number – 4819-DR – when claiming a loss.
- Qualified disaster relief payments: Payments received from government agencies for reasonable and necessary personal, family, living, or funeral expenses, as well as for home repairs or rehabilitation, are generally excluded from gross income.
- Retirement plan considerations: Disaster distributions from retirement plans or IRAs are not subject to the additional 10% early distribution tax and can be spread over three years. Hardship withdrawals may also be available in some cases.
How to get help
Eligible taxpayers can access free tax preparation help at Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. These services are available to those with an adjusted gross income of $79,000 or less in 2023.
To find a nearby location, use the VITA Locator Tool or call 800-906-9887. For assistance through AARP Tax-Aide, use the AARP Site Locator Tool or call 888-227-7669.
Key takeaways
- Affected taxpayers in designated disaster areas have until February 3, 2025, to file and pay certain federal taxes.
- Automatic tax relief is provided based on IRS records. Taxpayers with records in the disaster area should contact the IRS for assistance if they encounter any issues.
- This relief aims to support the recovery efforts of individuals and businesses impacted by the severe storms and flooding in Illinois.