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 (added 9/10/21), Suffolk (9/14/21), Sullivan (9/14/21)
In New Jersey: Bergen, Gloucester, Hunterdon, Middlesex, Passaic, Somerset, Essex (added 9/10/21), Hudson (9/10/21), Mercer (9/10/21), Union (9/10/21), Morris (9/14/21)
In Pennsylvania: Bucks, Chester, Delaware, Montgomery, Philadelphia, York (all added 9/13/21)
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.
Affected taxpayers in New York, New Jersey, and Pennsylvania claiming disaster-related casualty losses on 2020 returns should mark their returns as follows:
Taxpayers in New York: Put the disaster designation "New York – Hurricane Ida" in bold letters at the top of Form 4684 and include the FEMA disaster declaration number DR-4615 on any return.
Taxpayers in New Jersey: Put the disaster designation "New Jersey – Hurricane Ida" in bold letters at the top of Form 4684 and include the FEMA disaster declaration number DR-4614 on any return.
Taxpayers in Pennsylvania: Put the disaster designation "Pennsylvania, Hurricane Ida" in bold letters at the top of Form 4684 and include the FEMA disaster declaration number DR-4618 on any return.
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 counties that IRS recently added (Nassau, Suffolk, Sullivan, Essex, Hudson, Mercer, Morris, Union, and the six Pennsylvania counties listed above) are also 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 consistent with the relief that the IRS is offering.
New York Relief:
The New York Department of Taxation and Finance has announced that it is extending 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." 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, have been postponed to December 14, 2021. Note: this means that personal income tax returns currently due on extension by October 15, 2021 still have to be filed by October 15, 2021. Certain other payments due on or after September 2, 2021, but on or before October 2, 2021, have been postponed 90 days.
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 the announcement.
The Pennsylvania Department of Revenue has announced that it “is extending the due date to file various individual and business tax returns for taxpayers in parts of Pennsylvania who were affected by Hurricane Ida,” and that it will soon post further guidance, except that there will be “no extension for payments.”
Your Friedman LLP advisor stands ready to help you determine how to best take advantage of this relief. Contact us now with any questions.