The Internal Revenue Service has extended the deadline for filing and paying taxes for Hurricane Ida victims in six states to Feb. 15, 2022, from Jan. 3, according to news reports from CPA Practise Advisors.
Louisiana, Mississippi, and parts of New York, New Jersey, Connecticut, and Pennsylvania are all covered by the relief update. Localities eligible for disaster relief are always listed in the Around the Nation section of the IRS.gov disaster relief page.
As a result of the update, various tax filing and payment deadlines that started at different times in each state will be delayed:
- Aug. 26, 2021, for Louisiana,
- Aug. 28, 2021, for Mississippi,
- Aug. 31, 2021, for Pennsylvania and
- Sept. 1, 2021, for New York, New Jersey, and Connecticut.
Thus, the deadline for filing tax returns and paying taxes due to be filed by businesses and individuals affected will be Feb. 15, 2022. This means the deadline to file for those who were granted an extension for the 2020 tax year but did not file by Oct. 15, 2021, is now Feb. 15, 2022. As tax payments associated with these 2020 returns are due on May 17, 2021, the IRS notes that the relief is not applicable to them.
Additional quarterly estimated income tax payments due on Sept. 15, 2021, and Jan. 18, 2022, will also be extended through Feb. 15, 2019. Therefore, taxpayers in these areas no longer have to pay estimated taxes for the third and fourth quarters of 2021; they can instead include the estimated tax payments with their 2021 tax returns.
Also, payroll and excise tax returns generally due Nov. 1, 2021, and Jan. 31, 2022, are subject to the Feb. 15 deadline. The additional time is available to businesses with an original due date or extended due date.
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This includes calendar-year partnerships and S corporations whose 2020 extensions expire on Sept. 15, 2021, and calendar-year corporations whose 2020 extensions expire on Oct. 15, 2021. In addition for Businesses, the extension applies also to calendar-year tax-exempt organizations whose extensions expired on Nov. 15, 2021.
Information about other tax-related returns, payments, and actions that qualify for the extra time is available on the IRS disaster relief page.
Any taxpayer residing in a disaster area with an IRS address of record is automatically granted filing and penalty relief. These taxpayers are therefore not required to contact the agency in order to receive this relief.
Taxpayers who are issued a notice by the IRS of a late filing or late payment that is original or extended, and in the case of a deposit or payment due date within the postponement period, taxpayers need to request the penalty be reduced by calling the number on the notice.
As a result, the IRS will assist taxpayers who do not live in the area of the disaster but have records that necessarily meet the new postponement deadline during that time. For taxpayers residing outside the disaster area who are eligible for relief, the IRS can be reached at 866-562-5227. Employees of a recognized philanthropic organization or government working as part of the relief activities are also included in the latter.
Uninsured or unreimbursed disaster-related losses incurred by businesses and individuals in a federally declared disaster area may be claimed either on the return for the previous year (2020) or on the return for the year in which the loss occurred.
The federal tax relief will assist in mitigating the damages inflicted by Hurricane Ida and is determined by the Federal Emergency Management Agency (FEMA). You can find more information on disaster assistance at disasterassistance.gov.