IRS to Help Some Illinois Flood Victims

Various forms of disaster tax relief may be available to residents and business in Iroquois and Livingston counties in Illinois. Those who suffered losses in the severe storms and flooding between Jan. 7 and March 14 can elect to deduct those losses on their tax returns for 2007 rather than wait to deduct the losses on their 2008 returns. The IRS will postpone certain deadlines for taxpayers who reside or have a business in the disaster area until May 6. The postponement applies to return filing, tax payment and certain other time-sensitive acts otherwise due between Jan. 7 and May 6. In addition, the IRS will waive failure to deposit penalties for employment and excise deposits due on or after Jan. 7 and on or before Jan. 22, as long as the deposits were made by Jan. 22. The Internal Revenue Service has a Disaster Assistance Hotline 1-866-562-5227 available Monday through Friday from 7 a.m. to 10 p.m. (CST). IRS representatives are available to help those affected by the floods deduct their storm-related losses. If the taxpayer already filed their 2007 federal income tax return, a copy of that return will likely be necessary when calling the IRS hotline for assistance.