Many Tax Deadlines Postponed
Any federal tax due date that falls between September 10, 2001 and September 24, 2001 has now been postponed by the IRS to September 24, 2001. The postponement applies to the filing of returns, claims for refund, and other tax documents, as well as to tax payments (including estimated tax) and the filing of elections. Note that the postponement does not apply to federal tax deposits.
Treasury and IRS Provide Tax Relief for Victims and Rescue Workers
The Treasury Department and the Internal Revenue Service today announced initial administrative tax relief for individual and business taxpayers who are unable to meet their federal tax obligations because they were affected by Tuesday's terrorist attacks.
The IRS and Treasury are 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. They are also providing relief to taxpayers located in Arlington County, Virginia, home of the Pentagon, which was declared a disaster area today.
In the aftermath of Tuesday's tragedy, the IRS and Treasury want to assure taxpayers, businesses and tax practitioners that they are working aggressively to monitor the situation and resolve other potential tax administration issues as they are identified.
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 Jan. 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.
Although the IRS cannot extend the deadline for employment 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.
Due to the unprecedented scope and breadth of this tragedy, the agencies will continue to monitor the situation and may issue additional guidance as appropriate.
New Jersey Relief
The New Jersey Division of Taxation has announced that it will extend the due date of returns and payments due between September 11 and September 30 by ninety days for those businesses and individuals directly affected by the attack. Examples of those directly affected include victims whose place of employment was damaged or destroyed during these attacks, relief workers, taxpayers with records destroyed in the attacks, businesses destroyed or damaged and victims on the airlines.
For those individuals that were indirectly affected due to being stranded away from home or unable to access their funds, the Division will extend the due date for filing and payment of returns due during September to 10 business days after their due date.
Taxpayers who are entitled to the relief described above should write the following in red ink at the top of the return they file: "September 11, 2001 -- Terrorist Attack"
Businesses affected by the disaster that have an audit scheduled also are encouraged to contact the Division of Taxation if they need a postponement, according to N.J. Division of Taxation Deputy Director Harold Fox. "We want to be able to provide time for people to put their lives back in order," said Fox
New York Relief
The New York State Department of Taxation and Finance has announced that that it will be granting a 90-day extension for certain tax filing and payment deadlines. Deadlines for the following have been extended to December 10, 2001 for businesses and individuals who were impacted by the September 11 tragedy:
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filing any returns
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paying any tax or installment of tax
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filing a petition for credit or refund, or for redetermination of a deficiency, or application for review of a decision;
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allowing a credit or a refund;
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assessing tax;
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giving or making a notice or demand for payment of tax;
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collecting tax by levy or otherwise;
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bringing suit by New York State for any tax liability; and
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any other act required or permitted under the Tax Law or specified in the New York State Regulations.Both New York State and New York City allow for two additional three-month extensions for corporate tax returns beyond the automatic six-month extension period. For New York State, the form to use is CT-5.1. Additional extensions and New York City forms are NYC 6.1 (for general business corporations) and NYC 6.1B (for banking corps.).
Businesses or individuals who were afflicted by these tragic incidences should mark WTC on the top center of the front page of any late filed return, extension, declaration of estimated tax, estimated tax voucher, or other document, and should include a brief explanation of the circumstances that affected their ability to meet tax deadlines.
Resources :
Download IRS Publication 584 - Casualty, Disaster and Theft Loss Workbook (Personal-Use Property) to document damage and loss.
Download Form 4684 Casualties & Theft Form and
Instructions
Replacing Personal Documents
Drivers License
If your drivers license has been lost, report this to the nearest police station. To replace the license, visit any Regional Service Center or Motor Vehicle Agency to obtain a duplicate (the cost for a duplicate is $5 for a photo license and $3 for a paper license). To ensure that someone else does not secure a license in your name, you must show proof of identity at the agency, such as a certified copy of your birth certificate, U.S. Passport, or any other document issued by the U.S. that establishes your proof of identity and date of birth and verifies your presence in the U.S. is authorized under federal law. Other documents accepted as satisfactory proof for the issuance of a duplicate license are:
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a federal or state income tax form, when accompanied by a payroll check stub, credit card or some form of photo identification;
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a payroll check stub, accompanied by a credit or photo identification card.
A duplicate license may be issued in either photo or paper format, except for drivers under 21, first-time drivers and drivers with a commercial driver license, who must have a photo license.
Social Security Card
One form of identification and a completed application are required to obtain a replacement Social Security Card. Acceptable forms of identity include: driver's license, employer ID card, passport, marriage or divorce record, adoption record, health insurance card (not a Medicare card), military records, insurance policy or a school ID card. The social security department requires that you provide a document in the name you want shown on the card. Go to
www.ssa.gov/online/ss-5.pdf to download an application and then take or mail it with your form of identification to your local Social Security office. If you are applying for a card on behalf of someone else, they must see proof of identity for both you and the person to whom the card will be issued. Social Security office addresses and phone numbers are listed in the blue pages of your telephone book.
Credit and ATM Cards
The Federal Trade Commission advises all individuals whose ATM and/or credit cards have been lost or stolen to report the situation as quickly as possible. Many banks and credit card companies have toll-free numbers and 24-hour service to deal with emergencies.
It's important to also check your homeowner's insurance policy to see if it covers liability for card thefts.
Credit Card Loss
If a lost credit card is reported before it has been used, the Fair Credit Billing Act says that the card issuer cannot hold the card holder responsible for any unauthorized charges. If the card is used before the loss is reported, $50 is the most that the card holder will be responsible for.
ATM Card Loss
If a lost ATM card is reported before it has been used, the Electronic Fund Transfer Act says that the card issuer cannot hold the card holder responsible for any unauthorized withdrawals. If the unauthorized use occurs before the card is reported lost, the amount the card holder is responsible for depends on how quickly the loss was reported. If the loss is reported within two business days, the card holder will not be responsible for more than $50 for unauthorized use. If the loss is not reported within two business days of its occurrence, the card holder may lose up to $500 because of an unauthorized withdrawal. An unlimited loss is possible if the lost card is not reported within 60 days after a bank statement is mailed.
For more information, visit www.ftc.gov/bcp/conline/pubs/credit/atmcard.htm.
Insurance Policies and Cards
Call each of your insurance companies. You probably have a few for auto, homeowner's, life, flood and disability. For business owners, remember professional liability and business interruption policies. The following list links to several health insurance providers in the metropolitan area.
Birth Certificate
The New Jersey Division of Vital Records issues certified copies of birth certificates for births which occurred within New Jersey. You may only order your certificate or one for an immediate family member. New Jersey participates in the VitalCheck network, which means you may order a certificate on an expedited basis by telephone during business hours or by fax 24 hours a day. You may also order a record by mail or in person.
To order a birth certificate by telephone or fax, you must have a valid Mastercard, Visa, American Express or Discover Card. The following information is needed for the certificate: the full name on the birth certificate; the date of birth; the city where the birth occurred; father's full name; mother's full maiden name; your relationship to the person named on the certificate; a daytime telephone number; whether you desire delivery by regular mail or overnight carrier; and the street address to which the certificate should be sent. For more information on applying in person or by mail, contact the Division of Vital Records at 609-633-2860.
Passport
To reapply for a passport, you must go to the county clerk's office or any regional passport agency or designated post office. To find the office nearest you, look for Passport Services in the County Clerk listing in the County Government section of the blue pages. To obtain a replacement passport you need to:
a. Complete application form DSP-11, which can be obtained from any passport agency (during their posted hours of passport application acceptance). Many travel agents stock application forms for their clients as well.
b. Present proof of U.S. citizenship, such as a certified birth certificate.
c. Present proof of identity such as a valid drivers license or a current work ID.
d. Pay the applicable fee. If paying in cash, all passport agencies, along with some acceptance facilities, require exact cash. County courts are not required to accept cash. Checks and money orders are accepted as well. Passport agencies accept major credit cards and debit cards. Passport acceptance facilities are not required to accept these forms of payment.
e. Two passport pictures.
Marriage Certificate
New Jersey issues certified copies of marriage certificates of individuals married within New Jersey. Certificates will only be issued to the parties to the marriage. New Jersey participates in the VitalCheck network, which means you may order a certificate by telephone during business hours or by fax 24 hours a day. You may also order a record by mail or in person at the New Jersey Division of Vital Records. To order a marriage certificate by telephone or fax, you must have a valid Mastercard, Visa, American Express or Discover Card. The following information is needed: the name of the groom; the name of the bride; the date of marriage; the place where the marriage took place; a daytime telephone number; whether you desire delivery by regular mail or overnight carrier; and the street address to which the certificate should be sent. If you desire further information on applying in person or by mail, contact the Division of Vital Records at 609-633-2860.
Auto Loans or Mortgage Payment Books
Call the bank or mortgage company that holds the loan to obtain new payment books.
Automobile Titles
If your car is paid off and you hold the title, it is your responsibility to replace it. Applications are available at any Motor Vehicle Agency or Regional Service Center, or by writing to Motor Vehicle Services, Data Base Corrections Unit, CN 141, Trenton, NJ 08666-0141. Proof of identification must be shown in the form of a New Jersey or out-of-state license. In the case of a company-titled vehicle, a letter on company letterhead is necessary. If the vehicle is more than eight years old, proof of ownership in the form of a current registration document or an insurance card must be presented.
This Disaster Recovery Guide has been compiled from a variety of sources. It is intended as a source book and guide only. It is not a substitute for professional judgment or for research into authoritative professional literature. Although this manual is not authoritative, it will help guide you to authoritative sources.
Material contained within this guide should be augmented by, and used in accordance with, a certified public accountant's professional judgment. Your CPA can properly apply the tax laws and regulations to the facts and circumstances of your particular situation. For help with locating a CPA, visit
www.findacpa.org.
Portney & Company CPA's and Business Consultants is not responsible for any claims arising as a result of this information or its usage.
This guide was updated in September 2001. Future users of this material are cautioned that some portions, particularly tax-related information, may become outdated.
Documenting Damage and Losses for Insurance Claims
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Don't alter the condition of any damaged property until it is inspected by an insurance adjuster. You should, however, make necessary emergency repairs to prevent further damage.
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Take pictures of all damages, including your home's exterior, car, basement, roof and yard.
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Document all items and property that were damaged or destroyed. Note the cost, brand, model and date of purchase. Gather any available receipts and pictures of the items (even if the item is in the background of a family photo, for example).
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Contact your insurance company as soon as you have all the information related to your situation.
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Ask a contractor to estimate the costs of repairs. Provide this information to your insurance adjuster. (If you do not know who can provide the type of work you need, ask your insurance adjuster for references.)
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Record all expenses you incur as a result of property damage, including the cost of temporary repairs, hotel accommodations and meal expenses.
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If you are unhappy with the settlement you receive for your claim, contact the insurance company. If you do not receive satisfactory results, you may contact the Complaints Division at the Department of Banking and Insurance by calling 609-292-5360.
Information provided by the Society of Chartered Property and Casualty Underwriters
This Disaster Recovery Guide has been compiled from a variety of sources. It is intended as a source book and guide only. It is not a substitute for professional judgment or for research into authoritative professional literature. Although this manual is not authoritative, it will help guide you to authoritative sources.
Material contained within this guide should be augmented by, and used in accordance with, a certified public accountant's professional judgment. Your CPA can properly apply the tax laws and regulations to the facts and circumstances of your particular situation. For help with locating a CPA, visit
www.findacpa.org.
Portney & Company, CPA's and Business Consultants nor it affiliated companies are not responsible for any claims arising as a result of this information or its usage.
This guide was updated in September 2001. Future users of this material are cautioned that some portions, particularly tax-related information, may become outdated.
