Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has provided filing relief to the victims of the recent storms and flooding in Illinois. The IRS has extended tax return filing and payment deadlines for victims of the severe storms and floods in the Illinois counties of Adams, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Lake, Lawrence, Mercer and Winnebago. Taxpayers residing or having a business in these presidentially declared disaster areas have until August 25, 2008, to file returns, pay taxes and perform other time-sensitive acts. The extended deadline applies to items due between June 2, 2008, and August 25, 2008, and includes the filing of Form 5500 series returns, Annual Return/Report of Employee Benefit Plan.

  In addition, the IRS will also waive penalties for failure to deposit employment and excise taxes due on or after June 1 and on or before June 16, as long as the deposits are made by June 16. Taxpayers whose books, records or tax professionals' offices are located in the designated disaster areas may also be entitled to this relief.

  Neither of the extended due dates applies to information returns in the W-2, 1098, or 1099 series, or to Forms 1042-S or 8027. However, the IRS may waive penalties for failure to timely file information returns under existing procedures for reasonable cause. In addition, affected taxpayers may claim disaster-related casualty losses from the destruction of property on either their 2007 or 2008 federal income tax return.

  Affected taxpayers should write "Illinois/Severe Storms and Flooding" across the top of their returns to expedite the processing of any refund the taxpayer may be due.

Illinois Disaster Notice, 2008FED ¶46,493

Other References:

 
Code Sec. 6081

  CCH Reference - 2008FED ¶36,789.213

 
Code Sec. 7508A

  CCH Reference - 2008FED ¶42,687C.22

  Tax Research Consultant

  CCH Reference - TRC FILEBUS: 15,110

  CCH Reference - TRC FILEBUS: 15,204.25