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PrintIRS Filing Dates Postponed by Terror Attacks; Tax Relief Available for Those Affected
By John L. Duoba, Business Owner's Toolkit Staff Writer
The Internal Revenue Service (IRS) and Treasury Department have announced immediate changes in tax administration in the wake of the terrorist attacks of September 11, 2001.
Payment and filing dates have been adjusted not only for those taxpayers in the attack-affected areas, but for all U.S. citizens as well. Those people most seriously impacted by the East Coast tragedy are being given long-term tax relief, while the country at large has a short respite from their tax obligations.
Nationwide Tax Due Dates Changed
All federal tax obligations between September 10 and September 24, 2001, are postponed until September 24, according to an IRS release dated September 14. This change includes all taxpayers, not just those affected by the terrorist attacks on September 11, says IRS Spokesperson Bruce Friedland.
The delay includes filing returns and claims of refund, tax payments (including estimated tax payments), making elections and filing any other tax documents. Specifically, for those paying self-employment tax, the estimated quarterly payments normally due on September 17, 2001, have been postponed. These filers will have an additional week to comply.
"This is a terrific step because it takes all the pressure off in the short term while people assess what they need," Friedland said.
Friedland did not know how much tax revenue was involved in the relief measures. The Treasury Department has enough funds on hand to meet government obligations during the period, said Treasury Department representative Tara Bradshaw.
Victims' Tax Relief
IRS and Treasury are also providing relief to all taxpayers--regardless of where they reside--who are directly affected by the terrorist attacks. For example, this includes relief workers, the victims on the airplanes, taxpayers whose place of employment is in a disaster area, and taxpayers with records maintained in a disaster area.
In addition, the agencies are providing relief to all taxpayers in the five boroughs of New York City declared disaster areas by the President George W. Bush. They are also providing relief to taxpayers located in Arlington County, Virginia, home of the Pentagon, which also was declared a disaster area.
Among the tax relief and filing changes:
- Affected taxpayers who have an original filing deadline between September 11, 2001, and November 30, 2001, have an additional six months plus 120 days of time to file that return and make any payment due with that return.
- Taxpayers who are currently on an extension that expires between September 11, 2001, and November 30, 2001, will have an additional 120 days to file that return.
- Affected individual taxpayers who face an estimated tax payment date on September 17, 2001, may postpone that payment by including the amount with their final estimated payments for Tax Year 2001, which are due on January 15, 2002.
- Affected corporate taxpayers who face an estimated tax payment after September 10, 2001, and before January 15, 2002, may postpone that payment until January 15, 2002.
In addition, for six months the IRS will suspend many enforcement activities--such as levies, seizures and summonses--for affected taxpayers.
Taxpayers who are entitled to the relief described above should add the following designation in red ink at the top of returns they file: September 11, 2001-Terrorist Attack. If they receive a notice from the IRS, they should contact the IRS as indicated on the notice to explain why they are entitled to relief.
Note: Although the IRS cannot extend the deadline for payroll tax or excise tax deposits, the IRS will provide relief for businesses unable to make these deposits because of the terrorist attacks. The IRS will waive penalties on tax deposits required to be made by these businesses between September 11, 2001, and October 31, 2001, if those deposits are made by November 15, 2001. The IRS will provide additional details on this relief in Notice 2001-61 at the IRS web site (www.irs.gov).
Finally, if you have tax questions related to the September 11 terrorist attacks, the IRS has set up a toll-free hotline at 1-866-562-5227. It operates weekdays from 7 a.m. to 10 p.m. in English and from 8 a.m. to 9:30 p.m. in Spanish.
