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IRS Extends Filing and Payment Dates for 10 Counties in New Jersey and 7 Counties in New York

On September 8, 2021, in response to Hurricane Ida, the IRS issued a press release extending the filing and payment dates for various individual and business tax returns. On September 10, 2021, the IRS issued two more press releases (here and here) adding additional counties in NJ and in NY to the list of covered disaster areas.

Taxpayers affected by Hurricane Ida now have until January 3, 2022 to file their Federal income tax returns and submit payments that were originally due from September 1, 2021 through January 3, 2022. The IRS wants “people affected by this devastating hurricane focused on their safety and recovery for themselves and their families.”

The extension applies to individual taxpayers who live, and businesses whose principal place of business is located, in the covered disaster areas, which include the counties in New York and in New Jersey listed below. The extension also applies to taxpayers who are not in the covered disaster area but whose records necessary to meet a deadline are in the covered disaster areas. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster areas and any individual visiting the covered disaster areas who was killed or injured as a result of the disaster are entitled to relief.

Counties Providing Filing Relief

In New Jersey, filing relief is provided for the following counties:

  • Bergen
  • Essex
  • Gloucester
  • Hudson
  • Hunterdon
  • Mercer
  • Middlesex
  • Passaic
  • Somerset
  • Union

In New York, filing relief is provided for the following counties:

  • Bronx
  • Kings
  • Nassau
  • New York
  • Richmond
  • Queens
  • Westchester

On September 9, 2021, the New Jersey Division of Taxation announced it was “following the federal guidelines” and issued a similar but slightly broader extension. New York is expected to follow suit but has not done so yet.

Here Are the Details

The IRS is postponing  to January 3, 2022 various tax filing and payment deadlines that occurred starting on September 1, 2021, to file and to pay any taxes that were originally due during this period.

For example, if you filed an extension to file your individual 1040 tax return and the return was due October 15, 2021, then the filing deadline is postponed to January 3, 2022, but the payment deadline is not postponed because it was due on May 17, 2021 (as a result of an earlier extension from April 15).

The January 3, 2022 deadline also applies to (i) quarterly estimated income tax payments due on September 15, 2021, (ii) quarterly payroll and excise tax returns due on November 1, 2021, (iii) tax-exempt organizations operating on a calendar-year basis that had a valid extension due to run out on November 15, 2021, and (iv) businesses with an original or extended due date after September 1, 2021, including calendar-year partnerships, S corporations, and C corporations.

The relief is automatic for taxpayers in the affected counties, and taxpayers do not need to contact the IRS or file any special forms to take advantage of it, unless they receive a late filing or late payment penalty notice. In that case, they should call the IRS on a special phone number to resolve the issue.

Finally, remember there is a special provision in the tax code for losses occurring in and attributable to federally-declared disasters like Hurricane Ida. If a taxpayer suffers an uninsured loss in 2021 relating to Hurricane Ida, then the loss can be claimed in 2021 or it can be carried back to 2020 as if it occurred in 2020. Earlier use of the loss means earlier receipt of the tax benefit relating to the loss.

Relief for Tax-Exempt Organizations

Tax-exempt organizations in Ida-impacted localities that are later designated by FEMA as federally declared disasters will automatically receive the same filing and payment relief. This includes all Forms 990 series returns such as 990-EZ, 990-PF, 990-T (Including and all relevant estimate and extension payments), as well as Form 5500 for employee benefit plans, and is applicable for all tax filings and payment deadlines that occurred beginning on September 1, 2021.

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.

Those tax-exempt organizations eligible for the extended due date must consider their required state filings, both for charitable registration and solicitation and income taxes, the due dates for which have not yet been extended yet. Note that organizations with filing requirements beyond New York and New Jersey must take these additional state requirements into account in determining their filing requirements.

If you have questions regarding your individual or business tax returns, or the special loss provision, please reach out to your Withum Tax Advisor or contact us here.

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