Victims of this month’s winter storms in Texas have been given until June to file various federal individual and business tax returns and make tax payments by the Internal Revenue Services. The Texas state government has also extended its tax deadlines.
Following the recent disaster declaration issued by the Federal Emergency Management Agency, the IRS is providing this relief to the entire state.
The tax relief postpones various tax filing and payment deadlines that occurred starting Feb. 11.
Affected individuals and businesses will have until June 15 to file returns and pay any taxes that were originally due during this period, including 2020 individual and business returns normally due April 15 and 2020 business returns due on March 15. Taxpayers also have until June 15 to make 2020 IRA contributions.
The June 15 deadline also applies to quarterly estimated income tax payments due April 15 and the quarterly payroll and excise tax returns normally due on April 30. It also applies to tax-exempt organizations operating on a calendar-year basis that have a 2020 return due on May 17.
In addition, penalties on payroll and excise tax deposits due on or after Feb. 11 and before Feb. 26 will be abated if the deposits are made by Feb. 26.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
The IRS will work with any taxpayer who lives outside the disaster area but who has records in the affected area that are necessary to meet a deadline occurring during the postponement period. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at (866) 562-5227. This includes workers helping with relief activities who are affiliated with a recognized government or philanthropic organization.
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year), or the return for the prior year. They should write the FEMA declaration number – 4586 − on any return claiming a loss. Publication 547 offers more details.
The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time. The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. More information on disaster recovery is available at disasterassistance.gov.
The Texas comptroller’s office also extended the Feb. 22 due date for state taxes and fees one week, to March 1. The extension applies to all state taxpayers and is automatic; taxpayers do not need to file any additional forms. A list of the affected taxes and fees is on the comptroller’s site.
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