Articles

UPDATED IRS Extends Filing Deadlines for Taxpayers in Federally Declared Disaster Areas by Michael Hirsch, JD, LLM


Posted on September 10, 2021 by Michael Hirsch

The summer of 2021 has been marked by a significant number of natural disasters, both in the U.S. and around the world. Domestically, the IRS continues to grant tax-filing and -payment relief to taxpayers located in federally declared disaster areas, including those impacted by the California Wildfires and Hurricane Ida.

Who is an Impacted Affected Taxpayer?

Following a presidential declaration of a federal disaster area, the IRS is permitted to postpone tax deadlines automatically for residents and businesses located or working in the affected state, county or region. More specifically, affected taxpayers include:

When taking advantage of IRS relief, taxpayers must ensure that the counties where they reside or operate a business are, in fact, included in the designated disaster areas. The Federal Emergency Management Agency (FEMA) continuously updates this information on its website at https://www.fema.gov/. If you are affected by these events but not located in an already declared federal disaster area, you may later qualify for relief from the IRS. Until that point, you should prepare to meet all your existing federal tax filing and payment responsibilities.

California Wildfire Victims

Taxpayers who reside or operate a business in California’s Lassen, Nevada, Placer and/or Plumas counties now have until Nov. 15, 2021, to meet the following federal tax-filing and tax-payment obligations:

Taxpayers located in the Lassen, Nevada, Placer and/or Plumas counties do not need to do anything to qualify for relief. However, if you are impacted by the wildfires and live or operate a business outside the covered disaster area, you may contact to your CPA or the IRS’s disaster hotline to request relief.

Hurricane Ida Victims

In the wake of the devastation caused by Hurricane Ida, the IRS has extended until Jan. 3, 2022, certain federal tax-filing and tax-payment obligations for individuals, businesses and nonprofits located in the following areas:

The extended, Jan. 3, 2022, deadlines apply to the following tax-filing and tax-payment obligations:

New Jersey has also extended its state tax-filing and -payment deadlines until Jan. 3, 2022, for taxpayers located in the federally declared disaster areas. Taxpayers should request relief after they receive a notice from the Division of Taxation.

For New York taxpayers affected by Ida, the state has extended the tax-filing and tax-payment deadlines normally occurring between Sept. 15 and Oct. 2, 2021, until Dec. 14, 2021. This includes the filing of any returns, including those for personal income tax, corporate taxes, sales tax and any other taxes administered by the Tax Department, as well as certain tax payments described by the state.

North Carolina Victims of Tropical Storm Fred

The IRS has responded to the federal disaster declaration issued for parts of North Carolina in the wake of Tropical Storm Fred, which began on Aug. 16, 2021. Residents and business owners located in Avery, Buncombe, Haywood, Madison, Transylvania, Watauga and Yancey counties now have until Dec. 15, 2021, to meet the following federal tax-filing and tax-payment obligations:

If you suffered disaster-related losses, you should reach out to your advisors, including your CPA, to help you 1) understand your tax-filing rights and responsibilities, 2) quantify damages to property and interruption of business operations losses and 3) identify opportunities to qualify for a casualty loss deduction.

About the Author: Michael Hirsch, JD, LLM, is a senior manager of Tax Services with Berkowitz Pollack Brant’s State and Local Tax (SALT) practice, where he helps individuals and businesses to meet their corporate, state and local tax reporting requirements. He can be reached at the CPA firm’s Fort Lauderdale, Fla., office at (954) 712-7000 or info@bpbcpa.com.