Tax Relief: Here’s Who Qualifies So Far for Hurricane Ida Tax Breaks From the IRS

flooding from a hurricane or tropical storm.
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The IRS recently announced it is offering relief to any area designated by FEMA as qualifying for individual or public assistance. Taxpayers in Ida-impacted areas will automatically receive the filing and payment relief.

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The IRS disaster tax relief postpones various tax filing and payment deadlines. Affected individuals and businesses will now have until Jan. 3, 2022 to file returns and pay any taxes that were originally due during this period. The IRS clarifies that this means individuals who had a valid extension, due to expire on Oct. 15, to file their 2020 return will now have until Jan. 3, 2022 to file. This does not mean that payments related to 2020 returns are now extended — payment in full was due on May 17, prior to the hurricane. 

This currently applies for Louisiana, New York, Tennessee and New Jersey. Mississippi residents also get relief but have until Nov. 1 to file.

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The January deadline in New York and New Jersey also applies to quarterly estimated income tax payments due on Sept. 15 and the quarterly payroll and excise tax returns that are normally due on Nov. 1. The IRS adds that businesses with an original or extended due date also have the additional time. These businesses include calendar-year partnerships and S corporations whose 2020 extensions run out on Sept. 15, and calendar-year corporations whose 2020 extensions run out on Oct. 15.

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Additionally, penalties on payroll and excise tax deposits due on or after Sept. 1 and before Sept. 16 will be waived as long as the deposits are made by Sept. 16.

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About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 
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