ATTENTION NEW JERSEY TAXPAYERS

 FYI -

According to the Internal Revenue Service (highlights are mine) – 

“Individuals and households affected by Hurricane Ida that reside . . . in Bergen, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Morris, Passaic, Somerset, Union, and Warren counties qualify for tax relief. 

This means that individuals who had a valid extension to file their 2020 returns, due to run out on October 15, will now have until January 3, 2022 to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.”   

And according to the New Jersey Department of the Treasury (highlights, again, are mine) - 

“. . . the New Jersey Division of Taxation is following the lead of the IRS and extending tax filing and payment deadlines for certain taxpayers impacted by Tropical Storm Ida.

This means that individuals who had a valid extension to file their 2020 returns, scheduled to run out on October 15, will now have until January 3, 2022, to file. In addition, taxpayers may be eligible for abatement of penalty and interest on underpaid tax that would normally accrue during the period of the postponement.”

Be aware that if you owe Uncle Sam additional tax with the eventual filing of the 2020 Form 1040 (or 1040-SR) you will still be assessed penalty and interest on the amount due because, as the IRS announcement correctly stated, “tax payments related to these 2020 returns were due on May 17, 2021”.   A valid extension is only an extension of time to file - and not time to pay.  But, surprisingly, Uncle Phil may abate late payment penalty and interest.

TTFN