NEWS RELEASE Contact Person: Lisa B. Waterman
    Director of Marketing
FOR IMMEDIATE RELEASE Phone: 516-240-3300
  Fax: 516-240-3310
  E-mail: waterman@israeloff.com


Disaster Relief Programs In The Aftermath of Sandy

Following is a summary of a number of the programs that are available.

Disaster Relief Programs
Federal: Through its Office of Disaster Assistance (ODA), the small business administration (SBA) provides low-interest, long-term loans for physical and economic damage caused by a declared disaster. SBA offers home and personal property loans, business physical disaster loans, and economic injury disaster loans.
Home and Personal Loans: Renters and Homeowners could qualify for $40,000 or $200,000, respectively, to repair or replace their primary residence and to replace clothing, furniture, cars, appliances, etc.
Business Physical Disaster Loans: Businesses, profit or nonprofit organizations located in declared disaster areas could qualify for disaster loans up to $2 million. The proceeds could be used to repair or replace real property, machinery, fixtures and equipment, and inventory. The terms can be up to 30 years depending on the business's ability to pay.
Economic Injury Disaster Loan: If your business is located in the declared disaster area, you may qualify for this program if your business cannot meet its obligations and pay its ordinary and necessary business expenses. Loan limits up to $2 million.

You can get more details on the above program by visiting the following SBA link: www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/disaster-loans.

New York City Hurricane Sandy Business Recovery Programs

For Small-to Mid-sized Businesses:Emergency loans capped at $25,000. Call 311 and ask for NYC Business Emergency Loan.

For Mid-sized to Large Businesses: An emergency letter will be available, allowing businesses to avoid paying New York State and New York City sales tax on material purchases for rebuilding. Reconstruction programs exceeding $500,000 may qualify. Contact Shin Mitsugi at smitsugi@nycedc.com.

For any business that is temporarily displaced from its space: NYC will make available space at the Brooklyn Army Terminal free of charge for the next 30 days. Please contactDoug Roberts at droberts@nycedc.com for further information on this program.

The link to the NYC page on the above programs is: www.nyc.gov/html/sbs/nycbiz/html/home/home.shtml.

Qualified Disaster Payments Hurricane Sandy has been designated a qualified disaster by the Federal government. As such, payments made to individuals by their employers, by a government agency (such as FEMA), or by others are not subject to income tax to the recipient. The payments can be excluded from the individual's taxable income. Qualify disaster relief payments include amounts to cover necessary personal, family, living expenses, including costs to repairs or rebuild personal residence and to replace contents to the extent not covered by insurance.

Relief of Tax Filing & Payment Deadlines (as of today)

Federal

Individuals and Businesses, in designated disaster areas as assessed by FEMA, have until February 1, 2013 to file the following returns and payments: Fourth quarter individual estimated tax payments, normally due January 15, 2013; Third and fourth quarter payroll and excise taxes, normally due on October 31, 2012 and January 31, 2013; Tax-exempt organizations that file Form 990 series returns with an original or extended deadline falling between the above periods.

The IRS announced that it will abate any interest and any late-payment or late-filing penalties that would otherwise apply. The IRS is also waiving failure-to-deposit penalties for federal payroll and excise tax deposits normally due on or after the disaster area start date and before November 26th, if the deposits are made by November 26, 2012.

The relief applies to the taxpayers and organizations described above, and any residing outside the disaster area that has books, records or tax professional located in the area affected by Hurricane Sandy, in the following localities as assessed continually by FEMA:

  • In Connecticut (starting Oct. 27): Fairfield, Middlesex, New Haven, and New London Counties and the Mashantucket Pequot Tribal Nation and Mohegan Tribal Nation located within New London County;
  • In New Jersey (starting Oct. 26): Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, Somerset and Union;
  • In New York (starting Oct. 27): Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk and Westchester.

New York State

Deadlines have been postponed for the period beginning on October 26, 2012, and ending before November 14, 2012, for:

  • filing any returns, including those for personal income tax, corporate taxes, sales tax, highway use tax and any other taxes administered by the Tax Department;

  • paying any tax (see Exceptions for certain deposits of withholding tax and metropolitan commuter transportation mobility tax [MCTMT]) or installment of tax, including installment payments of estimated taxes.

  • All deadlines for performance of the above filing and/or payments that fall on or after October 26, 2012, and before November 14, 2012, have been postponed to November 14, 2012.

The above tax forms and payments are due on November 14, 2012.

Exceptions

Relief from these filing deadlines applies with the following exceptions:

Remittances of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made timely. Remittances of withholding tax or MCTMT required to be made by employers through the PrompTax system must be made timely.

New Jersey:

Taxpayers now have until November 7 to file and pay all payroll tax reports that were due on October 30th and 31st, for the following forms: F927, Form DSF -100 and Form TMF-10.

Connecticut:

Taxpayers in CT now have until November 7th to file and pay the following returns that were due on October 31st:

  • Monthly and quarterly sales and use tax, Income tax withholding,
  • Alcoholic beverage tax,
  • Admissions and dues tax,
  • Electric Generators Tax, and
  • Various gross earnings taxes.
  • As information is gathered by the respective agencies, the above could change. If you have any questions, or concerns, please do not hesitate to contact us.

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