The Internal Revenue Service has announced additional tax relief to businesses and individuals in parts of the Northeast that were affected by Hurricane Sandy. The program postpones tax filing and payment deadlines from late October to February 1, 2013. The IRS will abate any interest or penalties that would normally apply to those late payments.
For businesses that are currently working on rebuilding damaged property or recovering lost inventory, they won’t need to worry about paying taxes and filing forms on strict deadlines. Businesses and individuals don’t need to contact the IRS to receive this tax relief. It will automatically apply to those impacted in the disaster areas.
Currently, the tax relief is available to affected taxpayers and organizations in certain parts of Connecticut, New Jersey, and New York. But the IRS said that taxpayers in more locations might become eligible soon, depending on damage assessments by FEMA.
Taxpayers that live outside the areas listed, but who feel they should qualify for tax relief, can contact the IRS at 866-562-5227. Those outside the disaster areas who might also qualify for tax relief include those whose accountant or tax professional is located in a disaster area and workers assisting in disaster relief activities with a recognized government or philanthropic organization.
Additionally, failure-to-deposit penalties for federal payroll and excise tax deposits that were due between the disaster area start date and November 26, 2012, will be waived, as long as all deposits are made by November 26, 2012.
Hurricane Sandy made landfall in the U.S. on October 29, 2012, and left at least 4.7 million people in 15 states without electricity at some point throughout the storm.
This relief is in addition to disaster loans and other federal assistance programs for businesses and individuals that have been impacted by natural disasters. The SBA has a site dedicated to resources for businesses needing disaster assistance.
Hurrican Sandy, Brooklyn, NY, November 2012 Photo via Shutterstock
This is really a wise decision of the government. This would be a great relief for Small & large business owners.