IRS extends tax relief for taxpayers, exempt organizations in six states affected by Hurricane Ida

The IRS issued a release announcing that taxpayers, including tax-exempt organizations, affected by Hurricane Ida in six states now have until February 15, 2022 (extended from January 3, 2022) to file various tax and information returns and make certain tax payments.

The updated relief covers the entire states of Louisiana and Mississippi and parts of the states of New York, New Jersey, Connecticut, and Pennsylvania.

According to the IRS release—IR-2021-254 (December 22, 2021)— the updated relief postpones various tax filing and payment deadlines that occurred starting on dates that vary by state:

• August 26, 2021, for Louisiana—read about previously granted relief in TaxNewsFlash
• August 28, 2021, for Mississippi—read about previously granted relief in TaxNewsFlash
• August 31, 2021, for Pennsylvania—read about previously granted relief in TaxNewsFlash
• September 1, 2021, for New York, New Jersey, and Connecticut—read about previously granted relief in TaxNewsFlash and TaxNewsFlash

With this IRS relief, affected organizations and individuals have until February 15, 2022, to file returns and pay any taxes that were originally due during this period.

• Accordingly, calendar year tax-exempt organizations with 2020 extensions that expired November 15, 2021, now have until February 15, 2022, to file. (Because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.)
• The February 15 deadline also applies to quarterly estimated income tax payments that were due for the third and fourth quarters of 2021. Eligible taxpayers can skip making their estimated tax payments for both of these quarters (the third and fourth quarters of 2021) and instead make payment by the original due date of their 2021 income tax returns. [NOTE: The IRS revised this part of the guidance on December 30, 2021—read TaxNewsFlash.]
• The February 15 deadline also applies to the quarterly payroll and excise tax returns normally due on November 1, 2021, and January 31, 2022.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address-of-record located in the disaster area. Therefore, taxpayers do not need to contact the IRS to obtain this relief. However, if an affected taxpayer receives a late-filing or late-payment penalty notice from the IRS and the taxpayer has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer is instructed to call the number on the notice to have the penalty abated.

In addition, the IRS reported it will work with any taxpayer who lives outside the designated disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area are directed to contact the IRS at +1 866 562-5227.
 

For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com