NJ 2020 Tax Filing Deadline extended to 1/3/2022 ? Do I/you qualify?

[serviceguy]

Due to some family issues I had to deal with at the time and a touch of personal laziness, I had to file for an extension on the 5/17 deadline and waited until now to start worrying about my tax returns.

I'm usually due a conspicuous refund (I'm being taxed as single on payroll but file jointly and my wife does not work) so that should not be an issue, but I couldn't really file back in my because of some missing paper from last year passing of my father.

As a US person (being a foreign paying taxes in the US) I am supposed to report to the US Government all my assets (bank accounts, investments , real estate etc.) owned abroad. This started as an ill advise attempt at detecting fiscal evasion moving money abroad out of IRS grabbing range, but turned in a huge opportunity to appropriate massive amounts in punitive fees applied to those that do not report the otherwise untaxable assets. Clever, isn't it? To put it into perspective, those monies have been already heavily taxed at the source by a notable rate of 50+% in my case, welcome to Eurozone and Italy specifically (for those eagerly waiting to onboard a similar system) that also gives you full access to a less than consistent healthcare, but I digress....

So I contacted my tax attorney (already bracing for him asking me for a retainer, so I'm probably going to be on my own on this one) that offered that I do qualify for a further extension granted to counties hit by Ida that would bring the deadline to 1/3/2022. I doesn't seem to be well documented though so I wonder if there's any well versed in tax matters in here that could confirm that the extension to 1/3/2022 is valid even if I did not have any actual damage (other than a leaky ceiling) during Ida but just happen to live in Passaic county. Also, if that is the case do I have to file a further extension or would this one automatic? Again, I do not have to pay money to the IRS/State and I filed an extension back in April/May due to missing documents.

Thanks for any advise and sorry for the lengthy post, but you know it's me so...

 

[serviceguy]

Uhmm, though crowd today…any accountant in here?

 

[Magic]

File taxes, buy new bike.

 

[A Potted Plant]

this sounds like a bot he should be banned

 

[w_b]

If you don’t trust what your attorney is telling you, get a new one and follow their advice. Isn’t that the reason you use one?

 

[JerseyPete]

What Google told me.

IRS extends tax relief for Hurricane Ida victims in New York, New Jersey

The IRS has extended tax relief to parts of New York and New Jersey affected by Hurricane Ida.

www.cnbc.com

 

[clarkenstein]

I’m an accountant but that is a really long read, I think your question is, is an extension automatic?

No. You would need to file an extension. As for qualification, that’s your call.

 

[rick81721]

What is this NJ tax that you speak of?

 

[serviceguy]

I’m an accountant but that is a really long read, I think your question is, is an extension automatic?

No. You would need to file an extension. As for qualification, that’s your call.

How is qualification my call? My question is 'since I live in Passaic county does the extension applies to my and do I have to file an extension', so you answered the part about not being automatic but I'm still puzzled by that long read that left me wondering if just living in Passaic county gives me access to the extension.

If you don’t trust what your attorney is telling you, get a new one and follow their advice. Isn’t that the reason you use one?

It's not that I don't trust him, but if I had to pay him for his services my inheritance would be gone and then some...on top of that I left this dormant way too long and I'm too close to the deadline to look for another attorney, hence the glimmer of hope provided by a further extension...

 

[Patrick]

if just living in Passaic county gives me access to the extension.

If Passaic County qualifies, you qualify. What if your accountant was having a difficult time recovering?
Other parts of the chain could be broken. They aren't in the business of adjudicating each case.
File the form - or whatever it takes, then get your taxes done.

can always file an amended return if the missing paperwork is material.

 

[clarkenstein]

Ok, maybe I shouldn’t be asking this… but why are you using an attorney versus an accountant?

And it is your call - if you are in an area that gets a deadline delay, you can either chose to use the new deadline or not. If you don’t feel affected and can file on time, file on time. If you need to use the extra time, use it.

 

[serviceguy]

Ok, maybe I shouldn’t be asking this… but why are you using an attorney versus an accountant?

And it is your call - if you are in an area that gets a deadline delay, you can either chose to use the new deadline or not. If you don’t feel affected and can file on time, file on time. If you need to use the extra time, use it.

Fair question.

The accountant that I used in the past made the call not to report my foreign assets (not income, just assets that are not subject to taxation) which costed me a lot of money when I became aware of the problem and had to hire a tax attorney to navigate the system and find a legal solution that wouldn't let me entirely broke. Good job that I did when I did it too, because one of the previous administrations made a real effort to collect money abroad trying to get money they were not entitled to and mostly failing, but creating in the process a network that makes it very easy to detect unreported not taxable assets that can generate money through the imposition of severe monetary penalties. Enter FINCEN/FATCA and the USA/Italy fiscal agreement, which sent my bank into a frenzy of documents to sign, disclosures etc. My bank in Italy will not open an account for a US person altogether for this very reason, and the documents I had to fill last time I was in Italy was ridiculous (and they still did not get my ZIP code right)...they are also pressuring me to close said account I had with them for the last 40 years, which I postponed through the years for various reason (exchange rate not being favorable, improper documentation to document capital gains, etc.)

As a matter of fact, if you know an accountant that is well versed in handling of foreign assets, possibly in Italy/Europe more specifically, I would love to explore my best course of action for future transactions.

 

[clarkenstein]

I think you would want the strength of a firm behind you vs a sole accountant. You might want to ask Withum Smith and Brown. I used to work for them ages ago and as far as individual taxes go, they really know their stuff. Some of the people there were walking tax code reference materials.

The international component is definitely going to increase that charge per hour though.

Most foreign individuals I have worked with in the past avoided your issue by having employers gross up income here in the states because of all the double taxation that can take place. One, from Switzerland, had income grossed up here, then any taxes due in Switzerland also grossed up. It was the most generous situation I had ever seen. That doesn’t sound like an option here. Your current attorney sounds reasonable so you may want to stick with that option.

You’re in a tough spot, definitely.

 

[Patrick]

close the account. get out of the situation.
it is costing you extra money every year to maintain money.
waiting for the rate to be more favorable seems to throw good money and time at a temporary issue.
i'm sure there are other reasons tho.

 

[stb222]

Take the time you spent writing this out to do your taxes

 

[roc]

Take the time you spent writing this out to do your taxes

It’s been a long day at work, that gave me an out loud chuckle, thanks.

 

[serviceguy]

I think you would want the strength of a firm behind you vs a sole accountant. You might want to ask Withum Smith and Brown. I used to work for them ages ago and as far as individual taxes go, they really know their stuff. Some of the people there were walking tax code reference materials.

The international component is definitely going to increase that charge per hour though.

Most foreign individuals I have worked with in the past avoided your issue by having employers gross up income here in the states because of all the double taxation that can take place. One, from Switzerland, had income grossed up here, then any taxes due in Switzerland also grossed up. It was the most generous situation I had ever seen. That doesn’t sound like an option here. Your current attorney sounds reasonable so you may want to stick with that option.

You’re in a tough spot, definitely.

Not sure about Switzerland but there's no double taxation between USA and Italy. Not sure about the meaning of grossed up in this context...

Also, not about taxation per se a much as reporting (Italians are all criminals as everybody knows). I guess that's were accountants interest fades away.

close the account. get out of the situation.
it is costing you extra money every year to maintain money.
waiting for the rate to be more favorable seems to throw good money and time at a temporary issue.
i'm sure there are other reasons tho.

True. There have been other reasons in time, the latest being the bank in Italy not being able to provide appropriate documentation that would allow me to file capital gain income in the US (as US Person I do not pay taxes in Italy and they 'should not' collect any at the source as they automatically do, another source of conflict in the past). I may have to hire an accountant for that one. Especially since my dad's passing the accounts have doubled instead of disappearing. Things are a little bit less flexible in Italy, the only procedure we were offered by my dad's bank after he died in order to access his money was to open a new bank account with them (and a managed investment account because he had some very little money invested as well) where they would move the balance of his accounts once the succession was completed. This for the 3 of us (Mom, brother and me). This in spite of my mom being a joint owner of my father's account. Do the math, they closed 2 accounts and opened 6, ah, I get it now! I tried to fight it and have the inheritance moved to my own bank account, get out of the inheritance altogether (that wasn't possible as there was no final will), they wouldn't go for any of it...I dread the day I close those accounts and try to get proper documentation of exactly what my capital gain was...and it's literally pocket money!

I'm basically Brexit-ing all over again (Serviceguyxit doesn't really sound that catchy, does it), neither party wants to stay together and yet we can't find a way out of it!

Take the time you spent writing this out to do your taxes

I can post during idle time at work but I can't do my taxes...

 

[serviceguy]

Took advantage of the crappy weather and caught up with all my financial/property records from abroad and filled out of the proper forms, ready to file once I give them a relaxed third look after let it all simmer for a couple of days (I was literlaly cross-eyed by late afternoon yesterday). The second look highlighted some incorrect language in a statement that was promptly addressed. IRS instructions on how filling their forms are quite entertaining, real cliffhangers at times if you ask me...I have to say that the ration money/paperwork produced is astoundingly low in my specific case!