As many of us who are local know Hurricane IDA hit the Northeast hard on September 1st. The IRS has now announced, for certain victims in the New York/New Jersey area, you may have until January 3rd, 2022 to file your tax returns.
Per the IRS Website: “The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. 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.
Taxpayers in Ida-impacted localities subsequently designated by FEMA in other parts of these states will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.”
It is, of course, important to note the counties and reference the IRS and FEMA websites for other areas that may be added to the list in the coming weeks.
For individuals who have a valid extension to October 15, 2021 to file their 2020 return, now have until January 3, 2022 to file their return. Please keep in mind that tax payments related to 2020 returns are not eligible for this relief because they were due on May 17, 2021. The extension is an extension to file, not an extension to pay, which is normal with the IRS.
Also be aware of the following deadlines that were changed, to January 3, 2022, the:
In addition, penalties and payroll and excise tax deposits due on or after September 1 and before September 16, 2021, will be abated if the deposits are made by September 16, 2021.
All taxpayers should note: The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, 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.
There is a lot to digest in a short time and information on more areas that qualify is expected to come soon, so reach out to your Partner or CPA here at the Levine Jacobs with any inquiries. But note, the firm is still fully functioning and expects to hit original deadlines as planned. However, if you know you will need more time to provide information to the firm for your filings, contact us as soon as possible.
Charles F. Ott, MBA/CPA