On September 1, 2021 New Jersey and New York were hit with the remnants of Hurricane Ida, which caused catastrophic damages in the state of Louisiana a couple of days prior. Some portions of New Jersey and New York received excessive storm damage due to flooding and tornadoes. On September 2nd, President Biden approved an emergency disaster declaration for New Jersey and New York. Per notice 2021-179, the IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. This currently includes Bergen, Gloucester, Hunterdon, Middlesex, Passaic and Somerset counties in New Jersey. The Bronx, Kings, New York, Queens, Richmond and Westchester counties of New York are also included in the designated areas.
The tax relief postpones various tax filing and payment deadlines that occur after September 1, 2021. Individuals and businesses affected in these areas who have valid extensions will have until January 3, 2022 to file returns and pay any taxes that were originally due during this period. This includes quarterly estimated income tax payments due on September 15, 2021 and quarterly payroll and excise tax returns normally due on November 1, 2021. Tax exempt organizations with an extended due date of November 15, 2021 will also have until January 3, 2022 to file their non-profit tax returns. On September 8, 2021 the New Jersey Division of Taxation announced that it will also follow the federal guidelines for tax relief.
UPDATE: As of September 10th, 4 more counties in New Jersey were added to the disaster declaration; Essex, Hudson, Mercer and Union. In addition, President Biden approved a major disaster declaration for Pennsylvania. FEMA announced that federal disaster assistance has been made available to Bucks, Chester, Delaware, Montgomery, Philadelphia and York counties in Pennsylvania.
As a result of President Bidens disaster declaration, individuals and businesses who suffered from uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (2021) or the return for the prior year (2020). FEMA declaration number 4614 for New Jersey, 4615 for New York or 4618 fir Pennsylvania will need to be indicated on the return.
In addition, individuals and businesses affected by Hurricane Ida can visit www.disasterassistance.gov and apply for federal assistance if needed.
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