Some Illinois residents that reside or have a business in Cook County qualify for tax relief following a disaster declaration from the Federal Emergency Management Agency. This relief, initiated by a federal order, is set to provide specific assistance measures for both individual taxpayers and businesses affected by the disaster.

The specifics of this tax relief have been outlined clearly. According to an article from KPMG, as long as tax deposits were made before October 2, 2023, penalties will be lessened on payroll and excise tax deposits due on or after September 17, 2023. Individuals and businesses affected will now have until February 15, 2024 if they were previously due between September 17, 2023 and February 15, 2024. If a taxpayer receives a penalty that fell under the provision for late filing, they should call IRS to get this reversed.

Additionally, certain conditions define those who qualify for late tax filing provisions. According to an article from KPMG, people qualify for the late tax filing if they fall under one of the following provisions. Taxpayers with a valid extension for filing their 2022 return, which expired on October 16, 2023, are covered by this provision. It is important to note that the relief does not apply to tax payments associated with these 2022 returns, as they were originally due on April 18, 2023. Quarterly estimated income tax payment that are typically due on January 16, 2024. Quarterly payroll and excise tax returns are typically required by October31 ,2023,and January31 ,2024 . Corporations with calendar-year extensions for the year2022 that expired on October16 ,2023 . Tax-exempt organizations with calendar-year extensions expiring on November15 ,2023 .

Moreover, the IRS has announced additional exemptions and relief measures for those affected. According to an article from the IRS, affected taxpayers will receive exemptions from the customary fees and the need to request duplicates of previously filed tax returns by the IRS. Payments deemed as qualified disaster relief are typically excluded from gross income. This exclusion allows affected taxpayers to disregard amounts received from a government agency for essential personal, family, living, or funeral expenses, as well as for home repair or rehabilitation, or the replacement of its contents. Furthermore, additional relief options may be accessible to affected taxpayers enrolled in a retirement plan or individual retirement arrangement (IRA). The IRS might offer further disaster relief measures in the future.