IRS POSTPONES APRIL 15 FILING DEADLINE IN TEXAS

The Internal Revenue Service announced that victims of this month’s winter storms in Texas will have until June 15, 2021, to file various individual and business tax returns and make tax payments.

This is pursuant to a disaster declaration issued by the Federal Emergency Management Agency (FEMA). Taxpayers in other states impacted by these winter storms that receive similar FEMA disaster declarations will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

This relief means that filing and payment deadlines occurring between February 11, 2021 and April 15, 2021 are extended to June 15, 2021.

This includes 2020 individual and business returns normally due on April 15, as well as various 2020 business returns due on March 15. Among other things, this also means that affected taxpayers will have until June 15 to make 2020 IRA contributions.

The June 15 deadline also applies to quarterly estimated income tax payments due on 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 February 11 and before February 26 will be abated as long as the deposits are made by February 26.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Finally, 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. This means that taxpayers can, if they choose, claim these losses on the 2020 return they are filling out this tax season. If you need extra time to gather your 2021 casualty loss information to report on a 2020 return, you can obtain a further extension past June 15 if you request it.

For help with any of your tax-related needs, call the professionals at Cantrell & Cantrell in Houston, Texas – one of the nation’s leading tax-focused law firms. Our number is 713-333-0555.