The Internal Revenue Service has released information on tax relief for Hurricane Sandy victims in New York, New Jersey and Connecticut for individuals and businesses.
Relief includes return filing extensions, the exclusion of disaster relief payments from an individual’s taxable income and the waiving of diesel fuel penalties as summarized herein:
- Return Filing and Tax Payment Deadline: Individuals and businesses affected by Hurricane Sandy will have until February 1, 2013 to file and pay any taxes due for various tax filing and payment deadlines that occurred starting in late October. Also included are: (i) fourth quarter individual estimated tax payments normally due January 15, 2013, (ii) payroll and excise tax returns and accompanying payments for the third and fourth quarters, normally due on October 31, 2012 and January 31, 2013, respectively, and (iii) tax-exempt organizations required to file Form 990 series returns due during this period. The IRS will abate any interest, late-payment or late-filing that would otherwise apply. Relief is automatically provided to any taxpayer located in the disaster area.
- Treatment of Qualified Disaster Relief Payments: Qualified disaster relief payments made to individuals by their employer or any person can be excluded from those individuals’ taxable income. Qualified disaster relief payments include amounts to cover necessary personal, family, living or funeral expenses not covered by insurance and expenses to repair or rehabilitate personal residences or repair or replace the contents that were not covered by insurance.
- Diesel Fuel Tax Penalty Waived: A tax penalty will not be imposed on dyed diesel fuel that is sold for use or used on the highway. This relief applies October 30 through November 20, 2012 in New Jersey, New York and Pennsylvania.
Please find additional details on the Internal Revenue Service website at www.irs.gov.