Federal and State Hurricane Sandy Relief Efforts
Additional Time to Taxpayers and Preparers Affected by the Storm
INTERNAL REVENUE SERVICE
The Internal Revenue Service announced it is granting taxpayers and tax preparers affected by Hurricane Sandy until November 7 to file returns and accompanying payments normally due by October 31, 2012.
The relief applies to taxpayers and preparers in areas affected by Hurricane Sandy or otherwise impacted by the storm. Relief primarily applies to businesses whose payroll and excise tax returns and payments were normally due on October 31. No action is required by the taxpayer as this relief is automatic. Regular federal tax deposits are due according to current rules. However, the IRS notes that if taxpayers or tax practitioners receive a penalty notice for this period, they can contact the IRS at the number on the notice to request penalty abatement due to reasonable cause on account of the storm.
IRS expects to grant additional filing and payment relief as qualifying disaster declarations are issued by the Federal Emergency Management Agency (FEMA). Details will be posted on the Tax Relief in Disaster Situations page on IRS.gov. (See http://www.irs.gov/News-&-Events for more information.)
Following Governor Daniel Malloy’s emergency declaration and the continuing impact of Storm Sandy, Department of Revenue Services (DRS) Commissioner Kevin B. Sullivan has extended the deadline for state tax filings and payments due this week to the end of the business day on November 7, 2012. The Commissioner also waived state commercial tax registration requirements for out-of-state fuel suppliers, storm contractors and others coming into Connecticut on an emergency basis.
Said Commissioner Sullivan, “For all those affected by the storm, flooding, loss of power and damage, taxes are the last thing they need to worry about. Similarly, no tax paperwork should impede disaster recovery.”
State tax deadlines extended from October 31, 2012 include:
- Monthly and quarterly sales and use tax
- Income tax withholding
- Alcoholic beverage tax
- Admissions and dues tax
- Electric Generators Tax
- Various gross earnings taxes
Commissioner Sullivan noted that the state tax extension does not affect federal Internal Revenue Services tax deadlines.
A complete list of all filings and payments due October 31, 2012 are listed on the DRS website: Calendar Year Due Dates by Tax.
Commissioner Sullivan encouraged taxpayers impacted by Storm Sandy and who have state tax concerns to contact DRS for assistance. For information about various tax matters, visit the DRS website at www.ct.gov/DRS. When state offices reopen this week, customer service callers can contact (800) 382-9463 (within Connecticut, but outside the Greater Hartford area) or (860) 297-5962 (from anywhere).
Governor Christie has extended certain tax filing and payment deadlines for businesses whose operations were disrupted by Hurricane Sandy. Taxpayers who qualify will include businesses located in New Jersey, out-of-state businesses with operations in the State, and those who maintain tax records within the state.
Taxpayers who cannot meet normal filing and payment deadlines because of the storm now have until November 7, 2012, to file returns and tax payments that would have been due October 30 and 31.
Filings covered by the extension include:
- Form NJ-927, Employer’s Quarterly Report
- Form DSF-100, Domestic Security Fee Quarterly Return
- Form TMF-10, Transporter of Motor Fuels Report
In addition, taxpayers affected by Hurricane Sandy are also eligible for interest and penalty abatement.
Additional questions about tax relief in New Jersey for victims of Hurricane Sandy, call (609) 292-6400 or contact the Division at https://www.state.nj.us/treas/taxation/contactus_tyttaxa.shtml
The Governor has declared a State of Disaster Emergency for the entire state of New York. As a result, certain tax filings and payment deadlines for taxpayers affected by Hurricane Sandy will be postponed.
Taxpayers eligible for relief include:
- Victims of the storm who reside or have a place of business in New York State
- Workers assisting in the relief activities
- Taxpayers whose records are unavailable due to the storm
- Taxpayers who experienced disruptions in communication services and delivery of documents due to the storm
- Taxpayers whose practitioners were unable to complete work due to the storm
Deadlines that fall on or after October 26, 2012 and November 14, 2012, have been postponed to November 14, 2012, for:
- Filing of personal corporate, sales, highway use and any other tax returns
- Payment of tax, installment payments and estimated tax payments
- Filing requests for extensions
- Filing for credits or refunds
- Filing for a redetermination
- Collecting tax by levy
- Making elections
Further, relief from filing deadlines do not apply to remittances of income tax withheld by employers and remittances of MCTMT tax made by employers using Prompt Tax. Special rules also apply to Fuel Use Tax payments and the application of interest on late payments.
Taxpayers do not need to apply for waivers. E file instructions can be found on the NYS website.
NYS Department of Taxation has issued two Important Notices, N-12-11 and N-12-12, which provide additional information for those affected by Hurricane Sandy. Links to these notices and additional information can be found on the NYS Tax Department Web site (www.tax.ny.gov) or call (518) 457-5431.
The Secretary of Revenue announced certain filing and payment deadline extensions for business and individual taxpayers directly impacted by Hurricane Sandy. In general, Pennsylvania will follow the Internal Revenue Service rules extending federal tax deadlines to November 7.
The disaster recovery deadline extension generally applies to inheritance tax, employer withholding and motor carrier road tax filings and payments with due dates between October 29 and October 31. The deadline extension also applies to unemployment compensation tax filings for third quarter 2012 that were due October 31. These filings may now be filed by November 7.
No special action or notice is required as the deadline extensions will automatically be honored.
Please contact your Marcum LLP tax professional for further information.