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Following the severe storms and torrential rainfalls that began on August 18, 2024, the Internal Revenue Service (IRS) announced, in IR-2024-234 (September 10, 2024), tax filing and payment extensions for individuals and businesses in Connecticut and New York affected by the storm. 

Who is Eligible:

Affected taxpayers include individuals and households that reside or have a business in Suffolk County New York and in Fairfield, Litchfield, and New Haven counties in Connecticut.

Scope of Federal Tax Relief:

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

This means, for example, that the February 3, 2025, 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.

The postponement of time to file and pay does not apply to information returns in in the W-2, 1094, 1095, 1097, 1098, or 1099 series; to Forms 1042-S, 3921, 3922 or 8027.

How to Obtain Relief:

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extending filing, payment or deposit due date falling within the postponement period, the taxpayer or their representative should contact the IRS to have the penalty abated.

Connecticut Tax Relief:

On September 5, 2024, the Connecticut Department of Revenue Service (DRS) announced that it will extend relief to impacted taxpayers located in Fairfield County, New Haven County, and Litchfield County who have filing and payment obligations that were due between August 18, 2024, and September 30, 2024.

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. (See Taxpayer Services Special Bulletin 2024-6).

This blog will be updated when more information becomes available.

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Photo of Louis B. Schatz Louis B. Schatz

Louis Schatz is a partner in Shipman’s Tax and Employee Benefits Practice Group, and Chair of the State and Local Tax Group. From 2007 to 2017, Lou served on the firm’s seven-person Management Committee. He is the past Chair of the Tax Section…

Louis Schatz is a partner in Shipman’s Tax and Employee Benefits Practice Group, and Chair of the State and Local Tax Group. From 2007 to 2017, Lou served on the firm’s seven-person Management Committee. He is the past Chair of the Tax Section of the Connecticut Bar Association.

Lou practices in the areas of federal and State of Connecticut tax with attention to the representation of closely held businesses organized as limited liability companies, partnerships and S corporations; real estate joint ventures; and the representation of taxpayers involved in federal and Connecticut tax controversies (at the audit, appellate and court levels). He is a frequent lecturer on federal and State of Connecticut tax, partnership and limited liability company issues.

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Photo of Elva M. Saltzman Elva M. Saltzman

Elva Saltzman is an associate in the firm’s Tax and Employee Benefits Practice Group, where she assists clients in matters related to federal and state taxation. She has experience in tax planning, mergers and acquisitions, enforcement and collection defenses, and other federal and…

Elva Saltzman is an associate in the firm’s Tax and Employee Benefits Practice Group, where she assists clients in matters related to federal and state taxation. She has experience in tax planning, mergers and acquisitions, enforcement and collection defenses, and other federal and state tax controversies. Elva started her career in tax law at Shipman and then joined a Big Four accounting firm in its business tax services group, where she assisted private equity clients with tax compliance, before returning to the Shipman team.

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