Don't Mess With Taxes

The deadly and destructive effects of Hurricane Ida, a Category 4 storm that was the second-most damaging and intense ever to make landfall in Louisiana, weren't limited to the Pelican State. Ida's remnants also caused widespread tornadic destruction and catastrophic flooding across the northeastern United States. You can see Ida's complete path and intensity levels at Fleur DeOdile's WikiProject tropical cyclones tracker.

Apparently, the Internal Revenue Service also is feeling the Christmas/New Year crunch. The tax agency is giving taxpayers (and its staff) some end-of-year breathing room by further extending some Hurricane Ida tax deadlines beyond early 2022.

Victims of Hurricane Ida in six states who were looking at Jan. 3, 2022, deadlines now have until Feb. 15 next year to file various individual and business tax returns and make tax payments, the IRS announced today.

This longer tax timeframe covers the entire states of Louisiana and Mississippi, as well as parts of New York, New Jersey, Connecticut, and Pennsylvania.

The updated relief postpones various tax filing and payment deadlines that occurred starting on dates that vary by state. They are —

• Aug. 26, 2021, for Louisiana,
• Aug. 28, 2021, for Mississippi,
• Aug. 31, 2021, for Pennsylvania, and
• Sept. 1, 2021, for New York, New Jersey and Connecticut.

Feb. 15 tax extension: But one date is the same for all affected by the IRS relief in these six states. The taxpayers, both as individuals and business owners, now have until Feb. 15, 2022, to file returns and pay any taxes that were originally due during this period.

This added six weeks is of particular note to individuals who earlier this year got an extension to file their 2020 return. That deadline was Oct. 15, but filers on extension in the six states tapped today now have the new mid-February deadline to finally file those forms.

This extra time can help if they plan to claim any eligible Hurricane Ida losses on their 2020 return. You can read more about this disaster loss tax year claim option in my post on what to consider when making a major disaster tax claim.

Other deadlines delayed: The Feb. 15 extended deadline also applies to quarterly estimated income tax payments that were due on Sept. 15, 2021, and scheduled for Jan. 18, 2022.

The IRS says that taxpayers in these six state areas can skip making their estimated tax payments for both the third and fourth quarters of 2021 and instead include them when they file their 2021 return next April.

However, as I noted in my recent disaster relief posts for Kentucky and Illinois and Tennessee taxpayers, that 2021 filing could put a big dent in bank accounts.

If these folks also make 2022 estimated tax payments, then the April 2022 total due the U.S. Treasury could mean they might have to come up four payments: extended 2021 3rd and 4th quarter amounts, plus the first 1040-ES payment for 2022, and any tax owed in connection with their 2021 tax year returns.

Be aware of this potential financial hit and make any payment arrangements as early as you can.

Business filing changes: The Feb. 15 deadline also applies to the quarterly payroll and excise tax returns that businesses normally must file by Nov. 1, 2021, and Jan. 31, 2022.

Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions ran out on Sept. 15, 2021, and calendar-year corporations whose 2020 extensions ran out on Oct. 15, 2021.

This extension also applies to calendar-year tax-exempt organizations whose 2020 extensions ran out on Nov. 15, 2021.

Prior tax guidelines still apply: The standard IRS approach to these extended extensions still applies. Notably —

• The disaster tax relief is automatic for taxpayers with whose addresses in the agency's database are in the affected areas.
• If you get a late notice anyway, call the phone number on the notice to get any penalty abated.
• Individuals who are in the disaster areas assisting with relief activities provided by recognized government or philanthropic organization also are eligible for the tax relief.

You can read more about these circumstances in my original disaster relief posts for Connecticut, Louisiana, Mississippi, New York, New Jersey, and Pennsylvania.

You also can get updated disaster tax relief information at IRS.gov's Around the Nation section of its disaster relief page, read more on disaster tax deduction claims in IRS Publication 547, find out about other government recovery help at DisasterAssistance.gov, and get general disaster tax relief information at these blog posts and pages:

• Tracking down tax records to file a disaster claim
• IRS and other government resources can help you deal with a natural disaster
• Hurricane season 2021 is over, but stay prepared for year-round disasters
• Storm Warnings: Preparing for, recovering from & helping those affected by natural disasters

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