Extension of Certain October 15 Deadlines for Taxpayers Affected by Post-Tropical Depression Ida

This week, the NYS Acting Tax Commissioner postponed certain tax filing deadlines (occurring on October 15, 2021) for taxpayers affected by Post-Tropical Depression Ida (“Ida”). The announcement (Notice N-21-5) makes it clear that “certain tax filings” do NOT include the PTE tax election. Therefore, the NYS PTE tax election deadline is still October 15, 2021.

The eligibility requirements for NYS Ida relief are different than the federal Ida tax relief requirements granted by the IRS on September 9, 2021. Specifically:

• Eligible Taxpayer
  1. Federal - Individuals and businesses that reside in or have a business in a designated county qualify for federal tax relief.
  2. NYS - Taxpayers impacted by Ida who reside in or have a principal place of business in a designated county qualify for NYS tax relief.
     1. The difference is that for NYS tax relief, it appears a taxpayer must have been impacted by Ida in addition to residing or having a place of business in a designated county.
     2. Designated counties include the Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, Westchester, and contiguous counties due to the impact of Ida.
• Location of Records/Tax Advisors
  1. Federal - Taxpayers not in the covered disaster area, but whose records are necessary to meet a deadline in the covered disaster area, are also entitled to relief. However, they must contact the IRS before the filing deadline and request an extension.
  2. NYS - Any taxpayer whose records are necessary to meet tax filing, payment, or other deadlines are not available due to Ida; taxpayers who have difficulty in meeting tax filing, payment, or other deadlines because of disruptions in the transportation and delivery of documents by mail or private delivery services, or due to disruptions in communications services (for example, telephone, facsimile, or electronic mail), resulting from Ida; and taxpayers whose tax practitioners were unable to complete work to meet tax filing, payment, and other deadlines on behalf of their clients due to Ida.
     1. Again, the difference is that for NYS tax relief, the Notice appears subjective regardless of the location of taxpayer’s records and/or tax advisor. In contrast, the federal notice is clear: the taxpayer’s records must be in a designated county.
• Periods Covered
  1. Federal – Tax relief for certain filing deadlines falling on or after September 1, 2021, and before January 3, 2022, are postponed through January 3, 2022.
  2. NYS - 
     1. Certain filing deadlines have been extended 90 days, in respect of any tax liability, occurring during the period beginning on or after September 2, 2021, and ending on or before October 17, 2021.
     2. Deadlines for filing certain tax returns occurring on October 15, 2021, have been postponed to January 3, 2022. Certain federal tax filings that have been extended until January 3, 2022, have not been extended for NYS tax purposes.

Summary:
While NYS has provided an extension of time to file certain tax returns originally due October 15, 2021, it is important to understand that there is likely a difference between the definition of an “affected/eligible taxpayer” for purposes of federal and NYS tax purposes. In addition, the tax relief extended in the NYS Notice does not cover NYC taxes as of the writing of this alert.

If you have any questions, please consult with your Citrin Cooperman advisor or reach out to any of the following State and Local Tax Practice professionals: David Seiden at dseiden@citrincooperman.com, Eugene Ruvere at eruvere@citrincooperman.com, Tom Walsh at twalsh@citrincooperman.com, or Jaime Reichardt at jreichardt@citrincooperman.com.