IRS And Connecticut Provide Tax Relief To Taxpayers Impacted By Recent Storms

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Following the severe storms and torrential rainfalls that began on August 18, 2024, the Internal Revenue Service (IRS) announced, in IR-2024-234 (September 10, 2024), tax filing and payment extensions...

United States Connecticut New York Tax

Who is Eligible:

Affected taxpayers include individuals and households that reside or have a business in Suffolk County New York and in Fairfield, Litchfield, and New Haven counties in Connecticut.

Scope of Federal Tax Relief:

The tax relief postpones various tax filing and payment deadlines that occurred from August 18, 2024, through February 3, 2025 (postponement period). As a result, affected individuals and businesses will have until February 3, 2025, to file returns and pay any taxes that were originally due during this period.

This means, for example, that the February 3, 2025, deadline will now apply to:

Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the storm occurred.
Quarterly estimated income tax payments normally due on September 16, 2024, and January 15, 2025.
Quarterly payroll and excise tax returns normally due on October 31, 2024, and January 31, 2025.

In addition, penalties for failing to make payroll and excise tax deposits due on or after August 18, 2024, and before September 3, 2024, will be abated, as long as the deposits were made by September 3, 2024.

The postponement of time to file and pay does not apply to information returns in in the W-2, 1094, 1095, 1097, 1098, or 1099 series; to Forms 1042-S, 3921, 3922 or 8027.

How to Obtain Relief:

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extending filing, payment or deposit due date falling within the postponement period, the taxpayer or their representative should contact the IRS to have the penalty abated.

Connecticut Tax Relief:

On September 5, 2024, the Connecticut Department of Revenue Service (DRS) announced that it will extend relief to impacted taxpayers located in Fairfield County, New Haven County, and Litchfield County who have filing and payment obligations that were due between August 18, 2024, and September 30, 2024.

To request relief from penalty and interest that would otherwise accrue on any late filings or payments, impacted taxpayers should contact the DRS' Contact Service Center at 860-297-5962. The DRS will consider requests for relief based on the individual circumstances of each taxpayer. (See Taxpayer Services Special Bulletin 2024-6).

This blog will be updated when more information becomes available.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.