IRS offers tax relief to Hurricane Sandy victims

Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency (FEMA), the Internal Revenue Service (IRS) has announced additional tax relief for taxpayers in Connecticut, New Jersey, New York and Rhode Island affected by Hurricane Sandy. Other locations may be added based on additional damage assessments conducted by FEMA.

The tax relief postpones various tax filing and payment deadlines that occurred beginning in late October 2012. Affected individuals and businesses will have until Feb. 1 to file returns and pay any taxes due, including fourth-quarter or individual estimated tax payments normally due Jan. 15. The Feb. 1 extension also applies to payroll and excise tax returns and accompanying payments for the third and fourth quarters normally due Oct. 31, 2012, and Jan. 31, 2013, respectively, and tax-exempt organizations required to file Form 990 series returns with an original or extended deadline falling during this period.

The IRS will abate any interest, late-payment or late-filing penalty that otherwise would apply. The IRS automatically provides this relief to any taxpayer located in the disaster areas. Taxpayers do not need to contact the IRS to get relief.