IRS Extends Tax Deadline for Texans Affected by the Winter Storm
By Diana Hernandez, Staff Accountant, Tax & Business Services
The winter storms in Texas closed many businesses, and left many without power, heat and water for several days. The IRS has now granted tax relief to individuals and businesses affected by the storms that began February 11, 2021. Affected taxpayers have until June 15, 2021, to file their tax returns and make tax payments. The IRS has identified 254 Texas counties where taxpayers may qualify for tax filing relief, as follows:
- All individual and business tax returns originally due March 15 or April 15, 2021, are now due June 15. This also means that affected taxpayers will have until June 15 to make 2020 IRA contributions.
- The June 15 deadline applies to the first quarter estimated tax payments normally due on April 15, as well as to the quarterly payroll and excise tax returns normally due on April 30.
- The deadline extension also applies to tax-exempt organizations operating on a calendar-year basis, which have a 2020 return originally due on May 17.
- In addition, penalties on payroll and excise tax deposits due on or after February 11, 2021, and before February 26, 2021, will be abated as long as the tax deposits were made by February 26, 2021.
Taxpayers in a federally declared disaster area who have uninsured or unreimbursed disaster-related losses may claim such losses on either the return of the loss year (2021) or the prior year (2020). Those who suffered disaster-related losses should contact their Marcum tax advisors to discuss the options for claiming losses.
Affected taxpayers that receive a late filing or late payment penalty notice from the IRS should contact the phone number on the notice to explain the postponement and extended due date so the IRS may abate the penalty.
The IRS said it automatically identifies taxpayers located in the covered disaster area and applies the filing and payment relief. Affected taxpayers who reside or have a business located outside the disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.