Keeping with the spirit of the season, the IRS has now granted victims of Hurricane Ida an additional 43 days – until February 15, 2022 – to pay certain taxes, file the related returns, and execute a few time sensitive actions. You can review all the details on our update and our original article.
The IRS announcement covers the entire states of Louisiana and Mississippi as well as the following affected counties:
New York State: Bronx, Kings, New York, Queens, Richmond, Westchester, Nassau, Suffolk, Sullivan, Dutchess, Orange, Putnam, Rockland, Ulster
New Jersey: Bergen, Gloucester, Hunterdon, Middlesex, Passaic, Somerset, Essex, Hudson, Mercer, Union, Morris, Warren
Pennsylvania: Bucks, Chester, Delaware, Montgomery, Philadelphia, York, Bedford, Northampton, Fulton, Huntingdon, Luzerne, Schuylkill, Dauphin
What Returns Are Covered:
As with the previous relief, this notice covers, among other things, the following returns and payments:
- Individual and business income tax returns
- Gift tax returns
- Quarterly payroll and excise tax returns
- Calendar-year partnerships and S corporations whose 2020 extensions ran out on September 15, 2021, and calendar- year corporations whose 2020 extensions ran out on October 15, 2021, as well as fiscal year businesses with returns originally due, or with extensions, on or after September 1, 2021
- Third and now fourth quarter estimated tax payments
State Due Dates:
As of this writing (Thursday, December 23), none of the states have indicated if they will follow suit. The New Jersey Treasury Department previously announced, however, that “[s]hould the IRS further extend the filing deadline for federal tax purposes, the deadline for New Jersey returns and payments will also be extended.” Thus, as a result of the IRS further postponing certain due dates to February 15, 2022, from January 3, 2022, taxpayers having certain New Jersey tax filing and payment obligations that were previously postponed until January 3, 2022, would seemingly now have until February 15, 2022, to meet those deadlines.
FBAR Due Date:
While it is clear that the notice includes most federal tax returns, the separate relief until December 31, 2021 to file 2020 FBAR returns has not been further extended.
The notice introduces some uncertainty about the actual due date for third and fourth quarter estimated tax payments. The notice says that the February 15 extended deadline also applies to quarterly estimated income tax payments that were due on Sept. 15, 2021, and Jan. 18, 2022. The paragraph concludes by saying that, “taxpayers in these areas can now skip making their estimated tax payments for both the third and fourth quarters of 2021 and instead include them when they file their 2021 return.” The 2021 tax returns would not be due until April 15, 2022, not February 15, which is the new due date for the 2020 returns. Absent further clarification from the IRS, we recommend making these estimated payments by the earlier February 15 date.
Count on Friedman LLP
Your Friedman LLP advisor stands ready to help you determine how to best take advantage of this relief and resolve any inconsistent guidance. Contact us now with any questions.