TAX RELIEF AFTER SEPTEMBER 11, 2001

In response to the September 11, 2001, disaster in New York, the Internal Revenue Service and State and Local Tax Departments have granted administrative relief to affected individuals and businesses. This newsletter summarizes briefly those administrative actions.

1. Taxpayers claiming relief under any of the federal administrative provisions should write in RED INK at the top of the Return "September 11, 2001 - Terrorist Attack". This notation is a requirement and must be provided to obtain the benefits.

2. The due date for all federal tax obligations falling between September 10, 2001, and September 24, 2001, was postponed until September 24, 2001. This postponement affected the filing of returns and claims for refunds, the payment of tax, estimated tax payments, making various tax elections and the filing of other tax documents. However, the extensions did not affect the deposits of federal taxes. Interest and penalties are applicable from September 25, 2001.

3. Taxpayers who have difficulty meeting their federal tax obligations because of disruption in the transportation and delivery of documents by mail, and who do not otherwise qualify for relief, will have until November 15, 2001, to file returns and make payments.

4. "Disaster Areas" and "Affected Taxpayers" were specifically defined and generally referred to as taxpayers who are located in the Five Boroughs of New York City and Arlington County, Virginia.

5. "Affected Taxpayers" who are individuals, and who extended their tax returns to October 15, 2001, deadline will automatically have until February 12, 2002, to file their tax returns. Taxpayers other than individuals are granted a 120-day postponement and a six-month extension to file their federal tax return and pay the taxes.

6. All "Affected Taxpayers" are granted automatic extension until January 15, 2002, to make their estimated tax payments.

7. Extension of 120 days is granted for making deductible contributions (i) to certain retirement plans and individual retirement arrangements; (ii) the filing of a tax court petition; (iii) the filing of a claim for credit or refund of tax; and (iv) the bringing of a lawsuit upon a claim for credit or refund of tax.

8. Various State and Local governments throughout the country have also granted extensions to taxpayers for various statutory deadlines, although it should be noted that no uniformity exists among the relief provisions, including who qualifies for relief. Please contact this office for a summary of relief provisions by the City and State of New York, New Jersey and Connecticut.