Tax Relief Due to Hurricane Irene

TAX RELIEF DUE TO HURRICANE IRENE

Victims of Tropical Storm Irene that began on Aug. 27, 2011, in Connecticut, Vermont , Massachusetts,  New Hampshire, New York and New Jersey may qualify for tax relief from the Internal Revenue Service.

The President has declared the following Connecticut counties a federal disaster area: Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland and Windham. Individuals who reside or have a business in these counties may qualify for tax relief.

The President has declared the following Vermont  counties a federal disaster area: Addison, Bennington, Caledonia, Chittenden, Orange, Rutland, Washington, Windham and Windsor. Individuals who reside or have a business in these counties may qualify for tax relief.

The President has declared the following Massachusetts counties a federal disaster area: Berkshire and Franklin. Individuals who reside or have a business in these counties may qualify for tax relief.

The President has declared the following New Hampshire counties a federal disaster area: Carroll and Grafton. Individuals who reside or have a business in these counties may qualify for tax relief.

The President has declared the following New York counties a federal disaster area: Albany, Clinton, Delaware, Dutchess, Essex, Greene, Montgomery, Nassau, Orange, Otsego, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Sullivan, Suffolk, Ulster, Warren and Westchester counties. Individuals who reside or have a business in these counties may qualify for tax relief.

The President has declared the following New Jersey counties a federal disaster area: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 27, and on or before Oct. 31, have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept.15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 27, and on or before Sept. 12, as long as the deposits are made by Sept. 12, 2011.

Following the Presidential Disaster Declaration for Connecticut and filing and tax payment extensions announced by the Internal Revenue Services (IRS), the Connecticut Department of Revenue Services (DRS) announced additional state extensions that mirror certain federal extensions.

DRS Deputy Commissioner Joseph Mooney said, “On September 6, the IRS announced tax relief for victims of Tropical Storm Irene in Connecticut. Specifically, the IRS extended certain filing and payment deadlines falling on or after August 27 and on or before October 31 to October 31, 2011. Because certain Connecticut state tax returns are tied directly to federal tax returns impacted by the recently announced extensions, DRS will extend the filing and payment dates for these state tax returns to correspond to the federal extensions.”

The dues dates for all applicable estimates, extensions and returns originally due on or after August 27 and on or before October 31, have been extended to October 31, 2011. Payments by electronic funds transfer must be initiated no later than 4:30 p.m. on October 28 to be considered timely.

The tax types granted filing and payment extensions to October 31 are:

          Connecticut Individual Income Tax: CT-1040 series

          Connecticut Corporation Business Tax: CT-1120 series

          Connecticut Income Tax for Trusts and Estates: CT-1041 series

          Connecticut Composite Income Tax: CT-1065/1120SI

          Connecticut Unrelated Business Income Tax: CT-990T series 

Deputy Commissioner Mooney said the previously announced filing extension of September 13, 2011 remains in effect for the following Connecticut taxes:

          Sales and use tax,

          Business use tax,

          Room occupancy tax,

          Admission and dues tax,

          Alcoholic beverage tax,

          Tourism surcharge,

          Weekly income tax withholding,

          Gift and Estate

The Vermont Tax Department will be issuing information to explain state tax relief that will be linked to federal announcement.

The Massachusetts Department of Revenue and New Hampshire Department of Revenue Administration have not made an announcement regarding disaster relief.

The New York State Department of Taxation and finance deadlines have been postponed for the period beginning on or after August 26, 2011, and ending before October 31, 2011, for:

          • filing any returns, including those for personal income tax, corporate taxes, sales tax,

               and any other taxes administered by the Tax Department;

          • paying any tax (see exceptions for certain deposits of withholding tax, metropolitan

               commuter transportation mobility tax (MCTMT), sales tax, prepaid sales tax and excise

               tax on motor fuel and diesel motor fuel, and petroleum business tax) or installment of

               tax, including installment payments of estimated taxes;

          • filing any requests for extensions or additional extensions of time to file;

          • filing for a credit or refund;

          • filing for a redetermination of a deficiency, or an application for review of a decision;

          • allowing a credit or a refund;

          • assessing tax;

          • giving or making a notice or demand for payment of tax;

          • collecting tax by levy or otherwise;

          • bringing suit by New York State for any tax liability;

          • making of elections; and

          • any other act required or permitted under the Tax Law or specified in the

New York State Tax Regulations.

All deadlines for performance of the above required acts occurring during the period on

or after August 26, 2011, and before October 31, 2011 have been postponed to October 31, 2011.

The New Jersey Division of Taxation is following the federal guidelines for tax relief as recently provided by the Internal Revenue Service for victims of Hurricane Irene.

New Jersey’s tax relief, however, extends to taxpayers who reside or have a business in all 21 counties of New Jersey impacted by Hurricane Irene and New Jersey considers an affected taxpayer qualifying for tax relief to include businesses, individuals, those with tax records, and relief workers in areas disrupted by Hurricane Irene.

Taxpayers now have until October 31, 2011 to file their New Jersey tax returns such as individual income tax, corporation business tax, sales tax, inheritance tax, estate tax, partnership and other business taxes administered by the Division of Taxation and to submit payments for any return and/or payment, including estimated payments which have either an original or extended due date occurring on or after August 27, 2011 and on or before October 31, 2011.

The extended due date permits individuals and businesses that received a filing extension until October 17, 2011 to have until October 31, 2011 to file their returns. Businesses that previously obtained a filing extension to September 15, 2011 are also covered by this relief and have until October 31, 2011 to file their returns. Estimated tax payments for the third quarter of 2011 are now due October 31, 2011 instead of September 15, 2011.

Nonresident taxpayers with a filing requirement in New Jersey who are in a designated Presidential Disaster area in other states also have until October 31, 2011 to file any New Jersey nonresident tax returns that are due during the extension period.