IRS Extends Tax Deadline For Texas To June

The Internal Revenue Service has extended the deadline to file various individual and business tax returns and make tax payments for victims of the recent winter storm in Texas.

The tax relief postpones various tax filing and payment deadlines that occurred starting on February 11. As a result, affected individuals and businesses will have time until June 15, 2021, to file returns and pay any taxes that were originally due during this period. This includes 2020 individual and business returns normally due on April 15, as well as various 2020 business returns due on March 15. 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.

The severe snow storms that wreaked havoc across Texas closed many businesses, and left many without power, heat and water for several days in the state.

Following the recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS is providing this relief to the entire state of Texas. But taxpayers in other states impacted by the winter storms that receive similar FEMA disaster declarations will automatically receive the same filing and payment relief, IRS said in an announcement extending deadline. The list of eligible localities is available on the disaster relief page on IRS.gov.

The IRS advised taxpayers to not contact the agency to get this relief as it automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. However, 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.

In addition, the IRS promised that it 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. Taxpayers qualifying for relief who live outside the disaster area have been advised to contact the IRS at 866-562-5227. This also includes workers assisting the 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 non-reimbursed 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 claim these losses on the 2020 return they are filling out this tax season. “Be sure to write the FEMA declaration number – 4586 – on any return claiming a loss,” IRS noted in a press release.

Source: Read Full Article