IRS Grants Hurricane Ida Tax Relief Now Extended until February 15, 2022 - NJ Will Grant a Similar Extension

The IRS kicked off the holiday season today and issued notice IR-2021-254, extending the filing deadline for victims of Hurricane IDA in six states from January 3, 2022, to February 15, 2022. February 15, 2022, extension covers the state of Louisiana and Mississippi as well as parts of New Jersey, New York, Connecticut, and Pennsylvania.

Individuals, businesses, and tax-exempt organizations with a valid extension for their 2020 tax filings now have until February 15, 2022, to file tax returns and pay taxes that were due during the relief period. The relief is available for fling and payment deadlines for the six states as follows:

  • Louisiana – August 26, 2021
  • Mississippi – August 28, 2021
  • Pennsylvania – August 31, 2021
  • Connecticut, New Jersey, and New York – September 1, 2021

The February 15, 2022 extended period covers a variety of tax filings and payments during the covered period, which includes, among others, income tax filings, payroll tax filings, & estimated tax payments.

However, those whose tax payments were due on May 17, 2021, for their 2020 returns are not eligible for the relief because they fall outside of the relief period.

Because the relief period covers estimated tax payments due from September 1, 2021, through January 18, 2022. Taxpayers can make those payments on February 15, 2022.

The IRS is providing automatic penalty relief to any taxpayer located in a disaster area. Should the taxpayer be assessed a penalty, they should contact the IRS at the telephone number on the notice to have the penalty abated. The IRS has stated that they will work with taxpayers who are located outside the disaster area, but their books and records were located within a disaster area. The IRS recommends affected taxpayers in this situation should contact them.

Individuals and businesses in a Federal disaster area that incurred losses that were not reimbursed by insurance can claim those losses in the year of the loss on either a 2021 tax return or prior year 2020 return.

In addition, the State of NJ has announced that it will follow the February 15, 2022, Hurricane IDA extension as well.

Doug Finkle is a Tax Director at SobelCo with over twenty years of experience in handling tax compliance for corporations (including consolidations), partnerships, S corporations and high net worth individuals. Doug is well respected for sharing his in-depth knowledge of tax laws and regulations, most particularly by leveraging his deep involvement with tax planning and developing tax minimization strategies for clients.

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