Tax Relief for Hurricane Ida Victims in New Jersey, New York, and Pennsylvania
Angela Lawrence, Quality Control Coordinator at Klatzkin, contributed to this post.
Recently, the IRS announced that victims of Hurricane Ida in various parts of New Jersey, New York, and Pennsylvania now have until January 3, 2022, to file individual and business tax returns and make certain tax payments. The tax relief is being offered to taxpayers in any areas designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance.
In New Jersey, this includes the following counties:
- Bergen
- Essex
- Gloucester
- Hudson
- Hunterdon
- Mercer
- Middlesex
- Passaic
- Somerset
- Union
In New York, this includes the following counties:
- Bronx
- Kings
- New York
- Queens
- Richmond
- Westchester
In Pennsylvania, this includes the following counties:
- Bucks
- Chester
- Delaware
- Montgomery
- Philadelphia
- York
We encourage you to check the Tax Relief in Disaster Situations page on the IRS website for all eligible disaster relief locations.
The tax relief consists of a postponement of filing and payment deadlines as of September 1, 2021. As a result, individual and business victims now have until January 3, 2022, to file returns and make tax payments that are originally due during this period. For example, individual returns extended to October 15, 2021, now have until the January deadline. Other deadlines extended to January 3, 2022, include:
- Quarterly estimated income tax payments due September 15, 2021
- Quarterly payroll and excise tax returns due November 1, 2021
- November 15, 2021, extended date for tax-exempt organizations
- Calendar-year partnerships and S corporations whose 2020 extensions were to expire on September 15, 2021 and calendar-year corporations whose 2020 extensions were to expire on October 15, 2021.
Penalties on payroll and excise tax deposits due between September 1 and September 16, 2021, are abated as long as deposits are made by September 16, 2021.
As long as the taxpayer’s IRS address of record is located in a disaster area, the IRS will automatically provide the tax relief; there is no need to contact the IRS to get the relief. If, however, a taxpayer receives any penalty notice from the IRS for dates falling within the postponement period, they should call the IRS to have the penalty abated. In addition, if a taxpayer lives outside a disaster zone but their records are located inside the affected area, they should contact the IRS at 866-562-5227 to address the situation.
Uninsured and unreimbursed disaster-related losses suffered by individuals and businesses within a FEMA-declared disaster area can be claimed on either the return for the year the loss occurred or the previous year.
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©2021 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date. The content is provided for informational purposes only and does not constitute accounting, tax, or financial advice. Please consult your advisor concerning your specific situation.