In the wake of the terrorist attacks, the IRS has announced that all taxpayers in the five boroughs of NYC, as well as other taxpayers “directly affected” by the attacks, regardless of where they reside, will be entitled to tax relief.
Those entitled to IRS relief should designate in red ink on the top of the returns they file: “September 11, 2001 — Terrorist Attack.” The IRS has also stated that it will suspend many enforcement activities, such as levies, seizures and summonses to affected taxpayers.
Affected taxpayers who have an original filing deadline between September 11, 2001 and November 30, 2001, will be granted an additional six months plus 120 days to file a return and make any payment due. Taxpayers currently on extension that expires between September 11, 2001 and November 30, 2001 will have an additional 120 days to file.
Affected individual taxpayers who are required to make estimated tax payments on September 17, 2001 may postpone that payment by including the amount with their final estimated payments for tax year 2001, due on January 15, 2002. Affected corporate taxpayers who face an estimated tax payment after September 10, 2001, and before January 15, 2002, may postpone that payment until January 15, 2002.
NYS-DTF has also extended certain filing and tax payment deadlines for taxpayers both within and outside New York “who were afflicted by this atrocity.” Businesses or individuals who were afflicted should mark “WTC” on the top center of the front page of any late filed return, extension, declaration of estimated tax, and should include a brief explanation of the circumstances that affected their ability to meet the tax deadline.
Specifically, the Department has postponed deadlines from September 11, 2001 through December 10, 2001 for (i) filing any returns; (ii) paying any tax or installment of tax; (iii) filing a petition for credit or refund, or for a redetermination of a deficiency, or application for review of a decision; (iv) allowing a credit or a refund; (v) assessing tax; (vi) giving or making a notice or demand for payment of tax; (vii) collecting tax by levy or otherwise; (viii) bringing suit by NYS for any tax liability; and (ix) by any other act required or permitted under the Tax Law or regulations.
NYS estimated personal income tax required to be filed between September 11, 2001 and December 20, 2001, may be made on or before December 20, 2001 without the imposition of penalty or interest. Individuals, fiduciaries or partnerships who received an additional extension to file their NYS returns where the extended date is between September 11 and December 20 may also file on or before December 20, 2001 without the imposition of penalties or interest.
NYS employers required to file and make payments of withholding taxes from September 11, 2001 through December 20, 2001 may file and make payments on or before December 20, 2001. NYS taxpayers unable to file declarations of estimated corporate tax by September 11 through December 10, may file such declarations and make such installment payments by December 10, 2001.