Tax Relief for Disaster Victims

The IRS has announced that victims of Hurricane Sandy (and other disasters) in 2012 have additional time to file returns and pay estimated taxes. Details are available on the IRS website.

Who Qualifies

Only taxpayers considered to be affected taxpayers are eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts. They include:

Any individual whose principal residence, and any business entity whose principal place of business, is located in the counties designated as disaster areas; Any individual who is a relief worker assisting in a covered disaster area, regardless of whether he is affiliated with recognized government or charitable organizations; Any individual whose principal residence, and any business entity whose principal place of business, is not located in a covered disaster area, but whose records necessary to meet a filing or payment deadline are maintained in a covered disaster area; Any estate or trust that has tax records necessary to meet a filing or payment deadline in a covered disaster area; and Any spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife.

Relief Available

Affected taxpayers are given extended due dates for filing many tax returns (including individual, estate, trust, partnership, C corporation, and S corporation tax returns and others) or to make related estimated tax payments that have original or extended due dates falling on or after the onset date of the disaster but on or before the extended due date. Disaster onset dates are specified by state and county. See a partial list below.

Connecticut

Federally-declared disaster areas from Hurricane Sandy are: Fairfield, Middlesex, New haven, New London counties, and the Mashantucket Pequot and Mohegan Tribal Nations). For these places, the onset date was October 27, 2012 and the extended date is February 1, 2013 (mostly affecting 4th quarter estimated tax payments otherwise due on January 15, 2013).

New Jersey

Federally-declared disaster areas from Hurricane Sandy are: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren counties. For these places, the onset date was October 26, 2012 and the extended date is February 1, 2013 (mostly affecting 4th quarter estimated tax payments otherwise due on January 15, 2013).

New York

Federally-declared disaster areas from Hurricane Sandy are: Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk and Westchester counties. For these places, the onset date was October 27, 2012 and the extended date is February 1, 2013 (mostly affecting 4th quarter estimated tax payments otherwise due on January 15, 2013).