Following the recent disaster declaration by FEMA, the IRS has granted relief to businesses and individuals impacted by Tropical Storm Ida. In New Jersey, this currently includes residents/businesses in the following eleven (11) counties: Bergen, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Morris, Passaic, Somerset and Union. 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.
Relief granted to New Jersey Business and Individual Taxpayers
Track FEMA disaster declarations for New Jersey here for the latest developments.
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. Also, businesses having a valid extension and required to file a New Jersey Form CBT-100, CBT-100S or NJ-1065 by October 15, 2021 will also have until January 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.
Information on a $10.5M grant program administered the NJEDA for small businesses impacted by Ida is available here: https://www.njeda.com/njeda-board-approves-10-5-million-grant-program-for-small-businesses-to-support-recovery-from-tropical-storms-henri-and-ida/
Please refer back to this page for updates that are announced by FEMA, the Internal Revenue Service and States of New Jersey and New York.