MOUNTAINSIDE, N.J. -- The Internal Revenue Service today announced tax relief for New Jersey taxpayers impacted by the April 14-20 nor'easter storm and included in the Presidential disaster declaration.
The disaster area consists of the following counties in New Jersey:
- Bergen, Burlington, Camden, Essex, Gloucester, Hudson, Mercer, Middlesex, Morris, Passaic, Somerset and Union
Deadlines for affected taxpayers to file returns, pay taxes and perform other time-sensitive acts falling on or after April 14, 2007 and on or before June 25, 2007 have been postponed to June 25, 2007.
In addition, the IRS has waived the failure to deposit penalty for employment and excise deposits due on or after April 14, 2007 and on or before April 30, 2007, as long as the deposits were made by April 30, 2007.
If any affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply during the period from April 14, 2007 to June 25, 2007 (April 14, 2007 to April 30, 2007 for failure to deposit penalties). No penalty or interest will be abated for taxpayers that do not have a filing, payment or deposit due date (including an extended filing or payment due date) during this period.
This tax relief follows a previous extension, in which the IRS granted taxpayers affected by the April 14 storm in the northeastern states until April 26, 2007 to fulfill certain filing obligations.
The IRS computer system now automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. Taxpayers within the covered disaster area no longer need to self-identify by writing on their returns or using the disaster designation in their tax software.
However, affected taxpayers who reside or have a business located outside the covered disaster area will be required to call the IRS disaster hotline 1-866-562-5227 to self-identify for disaster relief.
Covered Disaster Area
The New Jersey counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.
Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose books, records, or tax professionals' offices are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area are eligible for relief.
Grant of Relief
Under sections 6081, 6161, and 7508A, the IRS gives affected taxpayers until June 25, 2007, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date falling on or after April 14, 2007, and on or before June 25, 2007.
The IRS also gives affected taxpayers until June 25, 2007, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2005-27, 2005-20 I.R.B. 1050, that are due to be performed on or after...