As a result of Hurricane Sandy, the Internal Revenue Service announced tax relief to affected individuals and businesses.

Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency, the IRS has announced that affected taxpayers in Connecticut, New Jersey and New York will receive tax relief.  Other locations may be added in coming days based on additional damage assessments by FEMA.

The tax relief postpones various tax filing and payment deadlines (including estate and gift tax filings) that occurred starting in late October. As a result, affected individuals and businesses will have until February 1, 2013 to file these returns and pay any taxes due.  This also includes fourth quarter individual estimated tax payments, normally due Jan. 15, 2013, payroll and excise tax returns and accompanying payments for the third and fourth quarters, normally due on Oct. 31, 2012 and Jan. 31, 2013, respectively, and it applies to 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 would otherwise apply.  The IRS automatically provides this relief to any taxpayer located in the disaster area.

New Jersey and New York are also in the process of implementing tax relief plans and we will keep you apprised of the developments regarding this relief.