Tax Relief for Ida Victims in New York and New Jersey

The IRS is giving victims of Hurricane Ida in parts of New York and New Jersey until January 3, 2022, to file various individual and business tax returns and make tax payments.

tax related actionsVictims located in areas designated by the Federal Emergency Management Agency as qualifying for individual or public assistance can take advantage of the tax relief. In New York, this currently includes Bronx, Kings, New York, Queens, Richmond, and Westchester counties, and in New Jersey, it includes Bergen, Gloucester, Hunterdon, Middlesex, Passaic and Somerset counties.

The current list of eligible localities, as well as details on other returns, payments and tax-related actions qualifying for the additional time, is available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on September 1, 2021. Affected individuals and businesses will have until January 3, 2022, to file returns and pay any taxes that were originally due during this period.

The January 3, 2022 deadline applies to the following deadlines, among others:

  • Individuals who had a valid extension to file their 2020 return due on October 15, 2021 (Be aware, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.)
  • Quarterly estimated income tax payments due on September 15, 2021
  • Quarterly payroll and excise tax returns normally due on November 1, 2021
  • Tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 15, 2021
  • Calendar-year partnerships and S corporations whose 2020 extensions run out on September 15, 2021
  • Calendar-year corporations whose 2020 extensions run out on October 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.

Taxpayers do not need to contact the IRS to get this relief. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. 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.

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 the affected area. Taxpayers qualifying for relief who live outside the disaster area, including workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization, should 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 claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year) or the return for the prior year (2020). Be sure to write the FEMA declaration number (4614 for New Jersey or 4615 for New York) on any return claiming a loss.

Questions

If you have any questions about the tax relief, contact us today to discuss your specific situation.

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