Hurricane Ida flooding victims across New York and New Jersey will now have until January 3, 2022 to file tax returns and make associated payments, the IRS announced this week. The relief will provide affected taxpayers with months of time to rebuild their lives and delay making tax payments.

Who Qualifies?

As of this writing, only taxpayers living in designated Federal Emergency Management Agency (FEMA) disaster locations qualify, including the  Bronx, Kings, New York, Queens, Richmond and Westchester counties in New York State, are allowed to delay their tax filings and payments. The same holds true for those who live in Bergen, Gloucester, Hunterdon, Middlesex, Passaic, and Somerset Counties in New Jersey. An up-to-date list of all eligible localities is available on the disaster relief page on IRS.gov. 

According to the IRS, the delayed filing is available to both individuals and businesses that extended their 2020 tax returns and had anticipated filing in September and October. However, the IRS noted that tax payments related to 2020 returns that were due on May 15, 2021 are not eligible for the Hurricane Ida relief.

The IRS said that individuals living in the FEMA-designated areas who had planned to make quarterly estimated income tax payments on September 15 may delay their filings until January 3. Payroll and excise tax deposits that were due September 1 can be made by September 16 without penalty.

Even workers assisting activities related to the relief that are affiliated with a philanthropic or government organization are allowed to delay their tax filings and payments, the IRS said.

How to Qualify

Taxpayers don’t have to contact the IRS or make a special election to delay their tax filings and payments. Instead, taxpayers that have a valid address of record within a disaster area will automatically receive the relief. 

Additional Tax Implications

Even those who may live outside the FEMA disaster areas may be eligible to receive relief under the new IRS rules. Taxpayers who don’t live within the designated areas but still require records from businesses impacted by Hurricane Ida are encouraged to contact the IRS at 866-562-5227 to address delays in receiving their required tax information.

Additionally, the IRS says taxpayers in disaster areas who incur losses because of a lack of insurance or unreimbursed expenses can claim those losses on either their 2020 or 2021 tax returns. In order to take the loss, however, taxpayers will need to include their FEMA declaration number on their returns. For New Yorkers, the number is 4615 and for New Jersey residents, the number is 4614.

New Jersey has also announced it will follow IRS delays in filing and payments due after September 1. Although New York has not officially announced any changes, historically it has been consistent with the IRS and its handling of delays in disaster areas.

As always, Perlson LLP is here to assist you with this and any other tax matter. Please contact us at your convenience at 516-541-0022 to discuss how we can help you navigate your unique situation.