he Internal Revenue Service (IRS) issued guidance granting relief to New York and New Jersey taxpayers affected by Hurricane Ida. The guidance is comparable to the guidance issued for Louisiana taxpayers. Refer to RSM alert. Affected New York and New Jersey taxpayers will likewise have until Jan. 3, 2022, to file various individual and business tax returns and to make tax payments.
The current qualifying areas in New York include the following counties:
- Bronx
- Kings
- New York
- Queens
- Richmond
- Westchester
The current qualifying areas in New Jersey include the following counties:
- Bergen
- Gloucester
- Hunterdon
- Middlesex
- Passaic
- Somerset
The guidance further explains that taxpayers in Ida-impacted areas 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 available and updated on the IRS disaster relief page. The IRS granted this postponement of certain deadlines under its section 7508A authority for those individuals and businesses located in areas affected by a federally declared disaster.
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 need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
The tax relief postpones various tax filing and payment deadlines that occurred starting on or after Sept. 1, 2021, and before Jan. 3, 2022. Affected individuals and businesses will have until Jan. 3, 2022, to file returns and pay any taxes that were originally due during this period. This includes those taxpayers with valid extensions to file 2020 returns that will run out on Oct. 15, 2021. The relief does not include payments related to these returns because those payments were due May 17, 2021.
The Jan. 3, 2020, postponement applies to the third quarter estimated income tax payment due on Sept. 15. The relief also applies to the quarterly payroll and excise tax returns normally due on Nov. 1, 2021. In addition, it applies to tax-exempt organizations, operating on a calendar-year basis that have a valid 2020 extension due to run out on Nov. 15, 2021. Businesses with extensions also have the additional time, including calendar-year corporations whose 2020 extensions run out on Oct. 15. In addition, the IRS will abate penalties on payroll and excise tax deposits due on or after Sept. 1, 2021, and before Sept. 16, 2021, as long as the tax deposits are made by Sept. 16, 2021.
The IRS disaster relief page contains further details on other returns, payments and tax-related actions qualifying for the additional time. Taxpayers should consult this page for information updates.
If you have any questions about this guidance please contact an RSM Tax Controversy professional.
