TAX AUTHORITIES TO GRANT EXTENSIONS:
FEDERAL RELIEF
After 5 p.m. yesterday, the U.S. Treasury Department and IRS issued a news release (IR-2001-81) and a Notice (Notice 2001-61) providing disaster relief for taxpayers affected by the September 11, 2001 Terrorist Attack in New York and Washington, DC. The pronouncements can be found on the NYSSCPA web site at
nysscpa.org.
Affected taxpayers with ORIGINAL filing deadlines between September 11 and November 30, 2001 have been granted automatic additional time amounting to six months plus 120 days to file returns AND make payments. Taxpayers currently on extension have an additional 120 days to file the extended return. Taxpayers owing estimated tax payments due on September 17 may postpone the payment and include them with the payment of the final estimated tax payments for the year, due on January 15, 2002. Corporate taxpayers with estimated tax payments due after September 10, 2001 and before January 15, 2002 may postpone that payment until January 15, 2002.
The relief applies to all individual and business taxpayers who are unable to meet their federal tax obligations because they were affected by the terrorists attacks. This includes:
- relief workers, regardless of whether they are affiliated with a recognized governmental or philanthropic organization
- airplane victims (both in the planes and on the ground)
- taxpayers with residences or places of employment in a disaster area
- taxpayers with records maintained in a disaster area The disaster area includes the counties of Bronx, Kings, New York (boroughs of Brooklyn and Manhattan), Queens, and Richmond in New York and Arlington County in VA.
In addition, taxpayers who are unable to file tax returns because of the disruption in the delivery of documents will have until November 15 to file their returns.
Taxpayers availing themselves of this relief should add the following designation in RED INK on the top of the returns they file:
"September 11, 2001 - Terrorist Attack".
Regarding employment tax payments, the IRS is not empowered to extend the deadline. They will, however, waive penalties for businesses unable to make deposits because of the terrorist attacks. This applies for payments due between September 11 and October 31, 2001, SO LONG AS deposits are made by November 15, 2001.
NEW YORK STATE
New York State will extend returns due on September 17 for 90 days. This relief is being granted administratively. We are told the legislature is being asked to extend this for an additional 90 days. Notice of this state-granted relief should be posted on the state Department of Taxation and Finance's web site by close of business today and will be reprinted on the Society's web site. The state department's web site is
tax.state.ny.us.
NEW YORK CITY
New York City tax filings due on September 17 will be extended for at least 90 days. |
