Tax Relief Provided to Taxpayers Impacted by Recent Storms in Connecticut and New York

The Internal Revenue Service announced yesterday that individuals and businesses in Connecticut and New York affected by severe storms and flooding from torrential rainfalls that began on August 18, 2024 are eligible for certain tax relief. Those qualifying for the relief include individuals that reside, or businesses located in Suffolk County, New York and in Fairfield, Litchfield, and New Haven counties in Connecticut. These taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments.

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

This means, for example, that the February 3 relief 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.

New York State: We are awaiting confirmation from New York that the Department of Taxation and Finance will conform with the federal extension.

Connecticut: Connecticut has also recognized that taxpayers in these affected areas may be unable to meet certain of their filing and payment obligations. Accordingly, the Department of Revenue Services (DRS) has determined it appropriate to exercise the authority provided to the Tax Commissioner to grant taxpayers with relief. 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.

For more information on the relief available to taxpayers in Connecticut and New York affected by the recent severe storms, please contact your Anchin Relationship Partner.