DISASTER RELIEF FOR NEW JERSEY

The IRS has expanded hurricane tax relief to cover taxpayers from all 21 counties in New Jersey.

“The President has declared the following 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.”

The State of NJ is following the federal government in providing extensions to affected taxpayers.

According to the NJDOT website -

“The New Jersey Division of Taxation is following the federal guidelines for tax relief as recently provided in the Internal Revenue Service announcements NJ-2011-42 and IR-2011-88 issued September 1, 2011 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.

In addition, taxpayers whose preparers were affected by Hurricane Irene have until September 22, 2011 to file returns normally due September 15, 2011. The taxpayer’s preparer must be located in an area that was under an evacuation order or a severe weather warning because of Hurricane Irene, even if the preparer is located outside of the federally declared disaster areas. This relief, which primarily applies to corporations, partnerships and trusts that previously obtained a tax filing extension, is available to taxpayers regardless of their location. This relief does not apply to any tax payment requirements.

If you receive a billing notice from the Division, you should call our Customer Service Center at the number listed on the notice to explain your circumstances. If you have additional questions about New Jersey tax relief for Hurricane Irene, call 609-292-6400 or e-mail the Division.”

It appears that for both federal and NJ returns there is no need to write “Hurricane Irene” or anything special on returns filed within the newly extended deadlines.  Both Sam and Chris should automatically identify your qualification when processing the return.  If you are penalized for late filing or paying, and you qualify as an affected taxpayer, you should write to Sam or Chris and the P+I will be abated.

While Irene did not affect me personally, my computer’s diarrhea caused delays for me, and I am happy to have the deadlines extended.

TTFN