Note: This article was originally published on September 13, 2021, with updates on September 29, 2021, and November 1, 2021.
Further to our alert on September 9, 2021, which listed various counties in New York and New Jersey whose taxpayers (individuals and businesses) are eligible for relief from certain federal tax filing and payment deadlines, the Internal Revenue Service (IRS) has extended this relief to additional counties in New York and New Jersey and to certain counties in Pennsylvania. The counties currently eligible for relief are:
In New York: Bronx, Kings, New York, Queens, Richmond, Westchester, Nassau, Suffolk, Sullivan, Dutchess, Orange, Putnam, Rockland, Ulster
In New Jersey: Bergen, Gloucester, Hunterdon, Middlesex, Passaic, Somerset, Essex, Hudson, Mercer, Union, Morris, Warren
In Pennsylvania: Bucks, Chester, Delaware, Montgomery, Philadelphia, York, Bedford, Northampton, Fulton, Huntingdon, Luzerne, Schuylkill, Dauphin
For the relief that the IRS granted to taxpayers in these counties, see our prior alert. Since that alert, which covered the relief for individual and business returns, the IRS has made clear that such relief extends to affected taxpayers in New York, New Jersey, and Pennsylvania having obligations to file estate or trust income tax returns, other trust returns, and estate, gift, and generation-skipping transfer tax returns, among other returns.
New Jersey Relief:
We noted in our prior alert that the set of taxpayers eligible for relief from tax filing and payment obligations to the State of New Jersey was somewhat questionable. The New Jersey Division of Taxation’s announcement referred to an IRS announcement (LA-2021-04) covering Hurricane Ida victims located in Louisiana but linked to an IRS announcement (IR-2021-175) covering victims in Louisiana and in any area that FEMA designated as qualifying for FEMA assistance.
New Jersey’s announcement now both refers and links to an IRS announcement (IR-2021-179) offering relief from federal tax obligations to victims in New York City and Westchester county in New York, and Bergen, Gloucester, Hunterdon, Middlesex, Passaic and Somerset counties in New Jersey. Hurricane Ida victims in these counties having New Jersey tax filing and payment obligations are thus eligible for relief from such obligations. Presumably, victims in all the New York, New Jersey, and Pennsylvania counties that IRS has designated for relief are eligible for relief from New Jersey’s tax obligations, inasmuch as New Jersey’s announcement indicates that the relief that New Jersey is offering is to be consistent with the relief that the IRS is offering.
New York Relief:
The New York Department of Taxation and Finance previously announced extensions to certain tax filing and payment deadlines for taxpayers in Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, Westchester, and “contiguous counties." As a result, returns for personal income, corporate, and sales tax, as well as certain payments, having a due date on or after September 15, 2021, but on or before October 2, 2021, had their due dates postponed to December 14, 2021. This relief, of course, did not cover personal income tax returns that were due on extension by October 15, 2021. In a subsequent announcement, however, the Department extended relief to returns that were due on October 15, 2021, postponing their due date to January 3, 2022, thereby postponing personal income tax returns that had been due on extension by October 15, 2021, to January 3, 2022.
Taxpayers eligible for relief include those residing, or having a principal place of business, in the counties noted above, as well as workers assisting in relief efforts in those counties, among other taxpayers. A complete list of the relief and eligible taxpayers is detailed in both the earlier announcement and in the subsequent announcement.
The NYC Department of Finance previously announced extensions to certain filing and payment deadlines as to taxes it administers, including the NYC Business Corporation Tax, General Corporation Tax, Unincorporated Business Tax, Banking Corporation Tax, Commercial Rent Tax, Hotel Room Occupancy Tax, Real Property Transfer Tax, and Utility Tax. Returns for these taxes that were due on or after September 15, 2021, and on or before October 2, 2021, had, for affected taxpayers, their due dates postponed to December 14, 2021. Although interest on late payments will continue to accrue, late payment penalties will not apply to certain payments made on or before December 14, 2021.
In a subsequent announcement, the Department extended relief to Business Corporation Tax, General Corporation Tax, Unincorporated Business Tax, and Banking Corporation Tax returns that were due on October 15, 2021, postponing their due date to January 3, 2022. Although interest on late payments will continue to accrue, late payment penalties will not apply to payments made on or before January 3, 2022.
Taxpayers affected by Hurricane Ida in the counties that the IRS has designated for relief (including the NYS, NJ, and PA counties listed above) are eligible for relief. This includes victims who reside in or have a principal place of business in the designated counties; all workers assisting in the relief activities in the designated counties; any taxpayer whose records necessary to meet tax filing, payment, or other deadlines were maintained in the designated counties and are not available because of Hurricane Ida, taxpayers who have difficulty in meeting tax filing and payment deadlines because of disruptions attributable to Hurricane Ida in the designated counties in the transportation and delivery of documents by mail or private delivery services, or because of disruptions attributable to Hurricane Ida in the designated counties in communications services (for example, telephone, facsimile, or electronic mail), and taxpayers whose tax practitioners reside in or have their principal places of business in the designated counties and were unable to complete work to meet tax filing, payment, and other deadlines on behalf of their clients because of Hurricane Ida.
The Pennsylvania Department of Revenue issued an announcement “extending the due dates to file various individual and business tax returns for taxpayers in parts of Pennsylvania who were affected by Hurricane Ida.” Taxpayers having original or extended due dates on or after August 31, 2021, now have until January 3, 2022, or until February 2, 2022, depending on the form to be filed. For example, individual returns that were due on extension by November 15, 2021, are now due January 3, 2022. Corporations filing Forms RCT-101 that were due on extension by November 15, 2021, are now due February 2, 2022.
These extensions do not apply to tax payments. They apparently also do not apply to Hurricane Ida victims in other states having Pennsylvania tax filing obligations. Full details are in the announcement.
Certain Hurricane Ida victims have until December 31, 2021, to file their 2020 FBARs. Please see our other alert for more details.
Your Friedman LLP advisor stands ready to help you determine how to best take advantage of this relief. Contact us now with any questions.