Executive summary: IRS postpones deadlines to May 15, 2023 for storm victims in certain NY counties
IRS postpones grants relief to storm victims in certain NY counties. Affected individuals and businesses have until May 15, 2023 to file and make payments originally due between Dec. 23, 2022 and May 15, 2022.
IRS extends tax filing deadline for storm victims in New York
Filing and payment relief for Erie, Genesee, Niagara, St. Lawrence and Suffolk counties in New York.
The IRS issued guidance granting relief to taxpayers affected by storms in New York that occurred between Dec. 23 and Dec. 28, 2022. Individuals who reside in and businesses with an address in Erie, Genesee, Niagara, St. Lawrence and Suffolk counties qualify for relief. Affected individuals and business will have until May 15, 2023 to file returns and make tax payments originally due between Dec. 23, 2022 and May 15, 2023.
The extended deadline applies to individual returns and business returns due Mar. 15, and April 18, 2023. The May. 15 deadline also applies to estimated tax payments normally due on Jan. 17, and April 18, 2023. These payments are postponed to May 15, 2023, for those taxpayers in the listed counties. Quarterly payroll and excise tax returns normally due on Jan. 31, April 30, 2023, are also postponed to May 15, 2023. Deadlines for payroll tax deposits and excise tax deposits are not postponed, but penalties on payroll and excise tax deposits due on or after Dec. 23, 2022, and before Jan. 9, 2023 will be abated as long as the tax deposits were made by Jan. 9, 2023. In addition, eligible taxpayers will also have until May 15, 2023, to make year 2022 contributions to their IRAs and health savings accounts.
The IRS relief includes other time-sensitive actions described in Reg. section 301.7508A-1(c)(1) and Rev. Proc. 2018-58; filing Form 5500 series returns due on or after the respective disaster start date and before May 15, 2023; and transferors who are not affected taxpayers but who are involved in a section 1031 like-kind exchange pursuant to section 17.02(2) of Rev. Proc. 2018-58.
Disaster-related casualty losses
In addition to extensions of time to file tax returns and complete certain actions, presidential disaster declarations offer taxpayers special options with respect to gain/loss recognition. Taxpayers who experience a casualty loss in a presidentially-declared disaster area may qualify to recognize losses in the year prior to the year the casualty actually occurred under section 165(i). Taxpayers who realize gains by receiving insurance proceeds in excess of basis may be able to defer gain recognition by reinvesting in qualified property under section 1033. Some of these actions are time sensitive, so taxpayers are encouraged to contact their tax advisor to take advantage of the full range of relief options. Taxpayers that will claim a disaster loss should put “Disaster Designation” in bold letters at the top of their return and include the FEMA disaster declaration number as indicated above on the return. For the December 2022 storms in New York, the designation is FEMA-4694-NY.
Please see the applicable news release and refer to Publication 547 and Instructions to Form 4684 Casualties and Thefts for instructions.
Automatic penalty relief
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. 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 IRS should be contacted to have the penalty abated.
Relief for those impacted outside the disaster area
The IRS will also 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.
