On September 8, 2021, the IRS announced expanded relief for residents in New Jersey and New York who have been impacted by Hurricane Ida earlier this month. Most federal tax filing and payment deadlines due after September 1, 2021 have been delayed until January 3, 2022 while the affected individuals and businesses recover from the storm aftermath. The New Jersey Division of Taxation has also announced similar state tax deadlines will also be delayed until January 3, 2022.
*Note, this deadline has been extended to February 15, 2022.
While the IRS initially granted the extension to the entire state of Louisiana and other nearby localities deemed disaster areas by FEMA, this latest guidance adds counties in New Jersey and New York to the eligibility list. The following counties are covered:
| New Jersey Counties | New York Counties |
|---|---|
| Bergen | Bronx |
| Gloucester | Kings |
| Hunterdon | New York |
| Middlesex | Queens |
| Passaic | Richmond |
| Somerset | Westchester |
Individuals and businesses in the above counties may have until January 3, 2022 to file extended tax returns, quarterly estimated taxes, and other returns and payments originally due after September 1, 2021. The release posted on IRS.gov reads:
The tax relief postpones various tax filing and payment deadlines that occurred starting on 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. This means individuals who had a valid extension to file their 2020 return due to run out on October 15, 2021, will now have until January 3, 2022, to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.
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 due to run out on November 15, 2021. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions run out on September 15, 2021 and calendar-year corporations whose 2020 extensions run out on October 15, 2021.
In addition, 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.
The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.
The IRS will automatically apply this relief to eligible taxpayers based on their address on record with the IRS. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This relief also applies to workers and volunteers assisting the relief activities through a recognized government or philanthropic organization and they too would need to contact the IRS to make arrangements for the extension.
The New Jersey Division of Taxation announced they are following the guidance of the IRS. Affected taxpayers include businesses and individuals located in the disaster areas and those whose tax records are in the disaster areas, and relief workers. According to the news release:
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. This means that individuals who had a valid extension to file their 2020 returns, due to run out on October 15, will now have until January 3, 2022, to file. In addition, you may be eligible for abatement of penalty and interest on underpaid tax that would normally accrue during this the period of the postponement. This also means individuals who had a valid extension to file their 2020 return due to run out on Oct. 15, 2021, will now have until Jan. 3, 2022, to file. However, because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief. If the IRS further extends the filing deadline for federal tax purposes, the deadline for New Jersey returns and payments will also be extended.
Unlike the IRS, the NJ extension is not automatic based on your address. Business and individual electronic filers must wait until a notice is mailed from the NJ Division of Taxation. You will need to respond to the notice to indicate that you are located in the Hurricane Ida disaster area. Paper filers must use black ink and write on the top of their return or payment: Presidential Disaster Relief Area, Hurricane Ida.
As of this time, the state of New York has not announced how or if they are extending their state tax deadline in a similar manner for Hurricane Ida victims.
As always in times of uncertainty or disaster, your Alloy Silverstein CPA is here to answer your questions and help ease your stress. Please don’t hesitate to reach out for more information and guidance.
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