Deadlines Extended to January 3, 2022
The IRS has extended deadlines for certain taxpayers affected by Hurricane Ida to file individual and business tax returns and make tax payments. The IRS, New Jersey and New York are offering tax relief to areas designated by the Federal Emergency Management Agency (FEMA).
The tax relief postpones tax filing and payment deadlines beginning September 1, 2021. As a result, affected individuals and businesses will have until January 3, 2022, to file returns and pay any taxes that were originally due during this period.
Individuals who had a valid extension to file their 2020 returns due to run out on October 15th, will now have until January 3, 2022 to file. However, since tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.
Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations due to run out on September 15, 2021 and calendar year corporations due to run out on October 15, 2021. This extension also applies to estimated tax payments.
Quarterly Estimated Income Tax Payments, Payroll and Excise Tax Returns and Tax-Exempt Organizations
The January 3, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2021 and the quarterly payroll and excise tax returns normally due on November 1, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension until November 15, 2021.
Penalties on payroll and excise tax deposits due on or after September 1 and before September 16, will be abated as long as the deposits are made by September 16, 2021.
Automatic Filing and Penalty Relief
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in a disaster area. Taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in an affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster related losses can choose to claim them on either the return for the year the loss occurred (2021) or the prior year (2020).
New Jersey is following the federal guidelines for victims of Hurricane Ida. Affected taxpayers include businesses and individuals located in the disaster areas and those whose tax records are in the disaster areas.
Taxpayers affected by Hurricane Ida now have until January 3, 2022, to file their New Jersey tax returns and submit payments for any return and / or payment, including estimated payments, which have either an original or extended due date between August 26, 2021 and before January 3, 2022. The individual might be eligible for abatement of penalty and interest on underpaid tax that would normally accrue during the period of the postponement. Similar to the IRS, tax payments related to these 2020 returns were due on May 17, 2021, are not eligible for this relief.
If you file a return electronically (business or personal), wait until you receive a notice from New Jersey. You will need to respond to that notice requesting tax relief and indicating that you are in a Presidential Disaster Relief Area Hurricane Ida.
If you file a return by paper, write in black ink “Presidential Disaster Relief Area, Hurricane Ida” on top of the return or payment.
Counties in New Jersey considered disaster areas that qualify for tax relief:
Counties in New York considered disaster areas that qualify for tax relief:
• New York
As of the release of this Alert, the New York Department of Taxation and Finance has not indicated whether it will postpone its filing or estimated payment deadlines.
As always, please contact us if you need assistance with your tax matters.