UPDATED 9/20: IRS and New Jersey Relief for Those Impacted by Tropical Storm Ida

 – September 20, 2021
UPDATED 9/20: IRS and New Jersey Relief for Those Impacted by Tropical Storm Ida

The IRS and state of New Jersey are providing various forms of relief and assistance to individuals and businesses impacted by Hurricane/Tropical Storm Ida.

IRS

Victims of Hurricane Ida in parts of New York and New Jersey now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. In New Jersey, this now includes 12 counties: Bergen, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Morris Passaic, Somerset, Union and Warren. In New York, this currently includes Bronx, Kings, New York, Queens, Richmond and Westchester counties. Taxpayers in Ida-impacted localities subsequently designated by FEMA in other parts of these states will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Sept. 1, 2021. As a result, affected individuals and businesses will have until Jan. 3, 2022, to file returns and pay any taxes that were originally due during this period, including the following:

  • Individuals who had a valid extension to file their 2020 return due to run out on Oct. 15, 2021. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.
  • Quarterly estimated income tax payments due on Sept. 15, 2021
  • Quarterly payroll and excise tax returns normally due on Nov. 1, 2021
  • Tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 15, 2021
  • Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions run out on Sept. 15, 2021 and calendar-year corporations whose 2020 extensions run out on Oct. 15, 2021.
  • Penalties on payroll and excise tax deposits due on or after Sept. 1 and before Sept. 16, will be abated as long as the deposits are made by Sept. 16, 2021.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.

New Jersey

  • On Sept. 5, FEMA designated six New Jersey counties major disaster areas: Bergen, Gloucester, Hunterdon, Middlesex, Passaic and Somerset. On Sept. 10, FEMA added Essex, Hudson, Mercer and Union counties to the disaster declaration, on Sept. 11 they added Morris and on Sept. 20 they added Warren. Track FEMA disaster declarations for New Jersey here.
  • The New Jersey Division of Taxation is following the federal guidelines for tax relief for victims of Hurricane Ida. Affected taxpayers include businesses and individuals located in the disaster areas and those whose tax records are in the disaster areas, and relief workers. Taxpayers affected by Hurricane Ida now have until Jan. 3, 2022, to file their New Jersey tax returns and submit payments for any return and/or payment, including estimated payments, which have either an original or extended due date between Aug. 26, 2021, and before Jan. 3, 2022. This means that individuals who had a valid extension to file their 2020 returns, due to run out on Oct. 15, will now have until Jan. 3, 2022, to file. In addition, you may be eligible for abatement of penalty and interest on underpaid tax that would normally accrue during this the period of the postponement. If the IRS further extends the filing deadline for federal tax purposes, the deadline for New Jersey returns and payments will also be extended.
  • NJEDA to offer $10.5 million grant program to small businesses impacted by Ida
  • New Jersey partners with Uber and Lyft to provide ride service to residents who lost transportation as a result of Ida

Additional Assistance

  • The SBA is offering disaster assistance to businesses and residents in parts of New York, New Jersey and Connecticut.
  • The NJCPA Disaster Recovery Guide help individuals and families with replacing lost or damaged personal documents and businesses with the process of recouping some of their losses.
  • AICPA members who have been impacted financially by Ida can apply for assistance through the AICPA Benevolent Fund.