On July 7, 2006, President George W. Bush declared Hunterdon, Mercer, and Warren counties in the State of New Jersey that were struck by severe storms and flooding at the end of June to be a Federal disaster area. The Internal Revenue Service is granting additional time to file Federal tax returns and make tax payments. The New Jersey Division of Taxation will follow the guidelines provided by the IRS for affected taxpayers, which include individuals and businesses located in the disaster area, those whose tax records or tax professionals’ offices are located in the disaster area, and relief workers assisting in the covered disaster area.

Taxpayers affected by the floods now have until September 11, 2006, to file New Jersey tax returns and submit payments, including estimated payments, which have an original or extended due date of June 23, 2006, through September 11, 2006. If the IRS further extends the filing deadline for Federal tax purposes, the deadline for New Jersey returns and payments will also be extended.

Taxpayers filing paper returns must identify themselves as victims of the floods by writing “Severe Storms-NJ” in black ink at the top of the return and/or payment voucher when filed.

Those taxpayers affected by the flooding whose due date for filing their New Jersey returns and paying tax is postponed may be eligible for interest and penalty abatement on underpaid tax that would otherwise accrue for the period of the postponement.

For more information on the extension of time to file New Jersey returns and pay tax, call the New Jersey Division of Taxation’s Customer Service Center at 609-292-6400 or contact us by e-mail. Also see the Division’s publication TB-54, Presidential Disaster Relief Areas.

Information about the Federal tax relief provisions is available in the press release issued by the IRS.