IRS tax relief now available to Hurricane Ida victims in New York and New Jersey; state of New Jersey also offers relief

As part of a coordinated response to Hurricane Ida, on September 8 and 9, 2021, the IRS issued IR-2021-179 and NY-2021-01, clarifying that it is offering relief (postponement of certain filing and payment deadlines) to taxpayers in Bronx, Kings, New York, Queens, Richmond, Westchester, Nassau, Suffolk and Sullivan counties in New York and in Bergen, Gloucester, Hunterdon, Middlesex, Passaic, Somerset, Essex, Hudson, Mercer, Union and Morris counties in New Jersey. This postpones various tax filing and payment deadlines occurring on, or after, September 1, 2021.

Individuals who had a valid extension to file their 2020 return by October 15, 2021, will now have until January 3, 2022, to file. 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:

  • Businesses with an original or extended due date after September 1, 2021 (e.g. calendar-year partnerships and S corporations with 2020 extensions that run out on September 15, 2021, and calendar-year corporations with 2020 extensions that run out on October 15, 2021).
  • Quarterly estimated income tax payments due on September 15, 2021.
  • Estate, gift and generation-skipping transfer tax returns (as well as fiduciary income tax returns) with a due date after September 1, 2021, and associated tax payments.
  • Quarterly payroll and excise tax returns normally due on November 1, 2021.
  • Tax-exempt organizations, reporting on a calendar-year basis, that had a valid extension due to run out on November 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 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. Affected taxpayers are eligible for relief from interest, penalties, or additions to tax during the postponement period.

Taxpayers not located in a county covered by the announcement, but whose records necessary to meet a deadline are located in an affected county, are also entitled to relief. However, the process for obtaining such relief is not automatic and is not clear as of this date; further guidance from the IRS is expected.

New Jersey Offers State Conformity

The New Jersey Division of Taxation has announced that it will conform with the IRS extensions and match the January 3, 2022 deadline for affected individuals and businesses to file state tax returns and submit payments.

The Division advises that, if you file a return electronically (business or personal), wait until you receive a notice from the Division. You will need to respond to that notice indicating that you are in a Presidential Disaster Relief Area, Hurricane Ida, and request tax relief. If you file a return by paper, you must write in black ink “Presidential Disaster Relief Area, Hurricane Ida” on the top of the return or payment.

Please contact your Mazars professional for additional information.

Published on September 10, 2021