On September 17, 2021, New York State (NYS) extended the State Disaster Emergency declaration related to Hurricane Ida (now categorized as a post-tropical depression). As a result of this declaration, NYS has postponed certain tax filing deadlines, including the extension deadline of October 15, 2021, until January 3, 2021. This applies to taxpayers in the counties affected include Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, Westchester, and contiguous counties.
Deadlines for filing the following tax returns occurring on October 15, 2021, have been postponed to January 3, 2022:
• Personal income tax
• Corporate taxes
• Any other taxes administered by the Tax Department
• Payments of any tax or installment of tax, including installment payments of estimated taxes (There are 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).
• Filing of any requests for extensions or additional extensions of time to file.
• Filing for a credit or refund.
NYS has extended certain other deadlines, occurring during the period beginning on or after September 2, 2021, and ending on or before October 17, 2021.
These include filings 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 the above deadlines occurring during the period beginning on or after September 2, 2021, and ending before October 17, 2021, have been postponed for 90 days.
An important point to note: This notice does not extend the time to make the election to participate in the Pass-through Entity Tax or the Employer Compensation Expense Tax.
However, keep in mind that deadlines for S-Corps, Partnerships and sales tax returns due between September 15 and October 2 are still due on December 14th, 2021.
Are you eligible for this postponement?
This tax relief applies to any taxpayers who was directly affected by Post-Tropical Depression Ida who reside in or have a principal place of business in the designated counties, all workers assisting in the relief activities in the designated counties, any taxpayer whose records are necessary to meet tax filing, payment, or other deadlines and are not available due to Post-Tropical Depression Ida; as well as those who have difficulty in meeting tax filing, payment, or other deadlines because of disruptions in the transportation and delivery of documents by mail or private delivery services, or due to disruptions in communications services resulting from Post-Tropical Depression Ida.
It also applies to freelancers using a tax practitioner who was unable to complete work to meet tax filings, payment, and other deadlines on behalf of their clients due to Post-Tropical Depression Ida.
Tax payments that are late due to Ida will be exempted from late filing fees. Relief provided Returns filed or tax payments made in accordance with these rules by those directly affected by the storm will not be subject to any late filing, late payment, or underpayment penalties or interest if received by January 3, 2022.
If you do receive a notice for late filing and/or late payment from the Tax Department, call the number on the notice to have the Tax Department abate any interest and any late filing or late payment penalties that would otherwise apply during these periods.
No penalty or interest will be abated for a taxpayer who does not have a filing or payment due date (including an extended filing or payment due date) during this period. Abatements of penalties on all other late filings of returns or late payments not made by the date required by law and not covered by this announcement will be handled on a case-by case basis.
If you are not sure if you are affected by these extensions, check with your tax professional, or visit the disaster relief page on IRS.gov.
Jonathan Medows is a certified public accountant licensed in New York, New Jersey, Maryland, and Pennsylvania. He is also a recognized expert in taxation for freelancers and the self-employed—often tapped for his expert knowledge and perspective on self-employment taxation by national and regional publications such as The New York Post, BusinessWeek, Forbes taxation blog, WebCPA, CPA Practice Advisor, and others. You can read some of Jonathan’s press coverage here.
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