Tax Relief

New York, New Jersey Ida victims obtain tax breaks

Victims of Hurricane Ida in parts of New York and New Jersey now have until early January to file various state individual and corporate returns and make tax payments.

The relief efforts, similar to last week’s for the victims of Ida, Louisiana, will apply to all areas classified by the Federal Emergency Management Agency as qualifying for individual or public aid.

In New York, these include the Bronx, Kings, New York, Queens, Richmond, and Westchester counties. In New Jersey, it includes the counties of Bergen, Gloucester, Hunterdon, Middlesex, Passaic, and Somerset.

The relief postpones various submission and payment deadlines that occurred from September 1st. Affected individuals and businesses have until January 3rd to file returns and pay taxes that were originally due during that period. Individuals who had a valid extension to filing their 2020 return, which is scheduled to expire on October 15, also have until January 3. (Since the tax payments related to these 2020 tax returns were due on May 17, these payments are not eligible for this relief.)

The January 3 deadline also applies to quarterly estimated income tax payments due September 15 and quarterly wage and excise tax returns normally due November 1. It also applies to exempt organizations working on a calendar year basis that had a valid renewal that expires on November 15th.

Companies with an original or extended due date that have the additional time include calendar-year partnerships and S-Corps with 2020 renewal periods that expire on September 15 and calendar-year companies with 2020 renewal periods that expire on October 15.

Salary and excise tax payments due on or after September 1 and before September 16 will be abolished as long as payments are made by September 16.

Taxpayers in Ida-affected locations who were later designated by FEMA in other parts of these states automatically receive the same relief. The current list of eligible locations is always available on the IRS Disaster Relief page. The page also lists other returns, payments, and tax-related actions that may be eligible for the additional time.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address located in the disaster area. If an affected taxpayer receives a late filing or late payment order from the IRS with an original or extended filing, payment, or deposit due date that falls within the grace period, the taxpayer should call the number in the notice to obtain the fine abated .

The IRS will also work with any taxpayer who lives outside the disaster area but whose records are in the affected area for a period due during the deferment period. Taxpayers eligible for assistance and living outside the disaster area must contact the IRS at (866) 562-5227.

This includes employees who support the relief effort and are affiliated with a recognized government or philanthropic organization.

Individuals and companies in a federally declared disaster area who have suffered uninsured or non-reimbursed disaster-related damage can either refer to the declaration for the year in which the damage occurred (in this case the declaration for 2021, which is normally submitted in the next year) or claim the declaration for the previous year (2020).

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