Courtesy of Citrin Cooperman Consulting, the following is a brief summary of programs and relief provisions that are being implemented to assist businesses and individuals who are located in the counties designated as disaster areas by the respective jurisdiction:
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’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:
New York City Hurricane Sandy Business Recovery Programs:
For small-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 firstname.lastname@example.org
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 contact Doug Roberts at email@example.com for further information on this program.
the link to the NYC page on the above program 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 and Payment Deadlines:
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 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 whom resides outside the disaster area that has books, records or tax professionals located in the area affected by Hurricane Sandy, in the following localities as assessed continually by FEMAIn Connecticut (starting October 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 October 2): Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, Somerset and Union In New York (starting October 27): Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk and Westchester