The Internal Revenue Service (IRS) announced tax relief for individuals and businesses in Connecticut and New York affected by severe storms and flooding that began on August 18, 2024. The affected areas, which include Suffolk County, New York, and Fairfield, Litchfield, and New Haven counties in Connecticut, are now eligible for an extension on filing various federal tax returns and payments until February 3, 2025.
This tax relief applies to any area designated by the Federal Emergency Management Agency (FEMA). The IRS will automatically provide filing and penalty relief to those with an IRS address of record in the affected disaster areas. Taxpayers do not need to contact the IRS to receive this relief.
Filing and Payment Relief
The new February 3, 2025, deadline will apply to:
- Individuals and businesses with a valid extension to file their 2023 federal returns, although payments were due before the storms.
- Quarterly estimated income tax payments due on September 16, 2024, and January 15, 2025.
- Quarterly payroll and excise tax returns due on October 31, 2024, and January 31, 2025.
Additionally, 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 deposits were made by September 3, 2024.
Claiming Disaster-Related Losses
Those in federally declared disaster areas with uninsured or unreimbursed disaster-related losses can choose to claim them on their 2024 or 2023 federal tax returns. Taxpayers have until October 15, 2025, to make this election. For those filing a loss claim, FEMA declaration numbers 3612-EM (Connecticut) and 3613-EM (New York) must be included on the return.
Additional Relief and Guidance
Taxpayers living outside the disaster area but whose records are located in the affected areas, as well as workers assisting relief efforts, may also qualify for this tax relief. Those qualifying outside the area should contact the IRS at 866-562-5227. Additional relief may be available for retirement plan distributions and other hardship withdrawals under specific plan rules.
For further details, taxpayers can visit the IRS website and refer to Publication 547 on casualties, disasters, and thefts, and Publication 525 on taxable and nontaxable income.
