Today is the last day to file taxes under the extended New York tax deadline in counties affected by 2022 storm conditions. In this blog, we explore how you can file taxes in New York counties by May 15, 2023, and avoid paying late penalties.
This relief came in response to the winter storms in New York counties between December 23 and December 28, 2022, and the disaster area declarations by the Federal Emergency Management Agency (FEMA).
New York counties eligible for the relief include:
- St Lawrence
Eligible Taxpayers under New York Tax Deadline Extension
The IRS New York tax deadline extension in these counties applies to:
- Individual taxpayers living in covered disaster areas;
- Businesses whose primary place of operations is located in the FEMA-covered disaster area;
- Some relief workers staying in the disaster-hit locations;
- And taxpayers who don’t reside in the disaster area but have records important to meet extended deadlines in the FEMA-designated area.
Tax Relief Provided
Individual taxpayers and businesses in designated New York counties affected by the storm of 2022 are eligible to file their tax returns until May 15, 2023. The New York tax deadline was extended to allow them more time to pay taxes that were initially due till the April 18, 2023, deadline.
The relief of the New York tax deadline extension also postpones several tax filing and payment deadlines taking place with effect from December 23, 2022. For instance, disaster-hit taxpayers have their deadline extended to May 15 to contribute to their IRAs and health savings accounts for 2022.
In addition, the new May 15 New York tax deadline also applies to quarterly estimated tax payments typically due on January 15 and April 15 and quarterly payroll and excise tax returns (due on January 31 and April 30).
Furthermore, the IRS will abate any penalties on payroll and excise tax deposits typically on or after December 23, 2022, and before January 9, 2023, if the taxpayers deposited by January 9, 2023.
As per guidelines regarding the New York tax deadline extension, the IRS has provided certain filing and penalty reliefs to taxpayers with an IRS address of record in a designated disaster area. Therefore, taxpayers don’t have to contact the agency separately to seek relief. The IRS also urges affected taxpayers to contact the agency if they receive any late filing notice to have the penalty abated.
Requesting Additional Extensions
Taxpayers also have the provision to request additional extensions from the IRS to file their federal income tax returns.
For instance, individual taxpayers can request more time to file their 2022 tax returns until October 15, 2023. However, the additional time will not apply to the original due date for tax payments. Filing for a New York tax extension electronically is advised to avoid delays or complications. However, if taxpayers cannot file electronically, they can file their extension requests only on paper after April 18, 2023, and before May 15, 2023.
If any affected taxpayers require more time to file their 2022 tax return beyond the May 15 deadline are requested by the IRS to file for additional time within the stipulated deadline to avoid any delays.
The IRS is working with taxpayers with addresses in disaster-hit New York counties to ensure they meet the tax filing deadline.
Penalty Under New York Tax Deadline Extension
There will be no penalty for those individual taxpayers and businesses in New York counties affected by the storm if they are filing their tax return on or after December 23, 2022, through May 14, 2023.
Penalty for Late Tax Filing
If you missed the tax deadline for any reason and didn’t file for an extension, there are a number of penalties. For missed deadlines, you may get a failure-to-file penalty from the IRS. You may receive a failure-to-pay penalty if you fail to pay your owed by the required deadline. Interest will also be charged on both taxes and penalties owed.
There’s typically an interest on the tax that must be submitted before the original due date for filing the return. This penalty applies to those taxpayers also if they have received an extension to file their return. In a majority of cases, an interest is not waived in most cases.
If you file your tax return late, even after receiving an extension, there’s a charge of 5% of the tax. This penalty is due every month. It goes until a maximum of 25%. Furthermore, if the return is over 60 days delayed, a minimum penalty is levied ranging between $100 or the total amount due on the return.
How to Avoid Late Tax Filing
An important thing to do to avoid a penalty for late tax filing is to ensure filing all returns on time. If you can’t do so, seek an extension or a payment plan to avoid any penalty. You can use Form 4868 to request an extension to get additional time to file your tax return. However, remember you will not have extra time to pay your taxes. This will give you until October to file your 2022 tax return without penalty for late filing.
Secondly, avoid any mistakes while filing to prevent any delays in tax filing. Thoroughly check the details on your tax forms, including personal information, Social Security number and other important information. Ensure to report all your income from self-employment jobs, freelancing and other sources.
How to File Taxes with Line
Line is a free tax filing product designed to provide ease of use to all taxpayers. From gig workers to self-employed small business owners, taxpayers can use Line to file their 2022 tax return. Users can file both federal and state taxes for free for all types of forms and filing statuses.
The New York tax deadline extension applies to all disaster-hit taxpayers in the designated counties. Eligible counties include Erie, Genesee, Niagara, St. Lawrence and Suffolk. It is important to file all tax returns on time to avoid any penalties. Furthermore, ensure to double-check all your documents and forms to prevent penalties. It is easy to file taxes for free and electronically through the IRS portals. Moreover, you can apply for an extension to file your taxes with Form 4868 with the IRS.