The IRS is giving taxpayers and tax preparers affected by Hurricane Sandy until Nov. 7 to file returns and payments that were due today. It primarily affects busineses whose payroll and excise returns were due. The extension is automatic; taxpayers don’t have to take any action.
Regular federal tax deposits are due in accordance with current rules, according to the IRS. But if taxpayers or preparers receive a penalty notice for this period, they can request a penalty abatement due to reasonable cause (the storm). They should call the IRS phone number on the notice.
The agency said it anticipates granting additional filing and payment relief as the Federal Emergency Managment Agency issues disaster declarations. It will post details on the “Tax Relief in Disaster Situations” page on its website.