IRS Extends Tax Deadlines for Texas Winter Storm Victims
On February 22, the IRS announced that the deadlines for certain tax filings and payments would be extended until June 15, 2021, for individuals that reside or have a business with a principal location in any Texas county. The extension also applies to tax-exempt organizations located in Texas, certain workers assisting in relief efforts associated with the disaster, and individuals or business not located in Texas but whose records are maintained in a location impacted by the disaster. This extension applies to deadlines falling on or after February 11, 2021 and before June 15, 2021, including the following:
- 2020 business tax returns originally due on March 15;
- 2020 individual and business tax returns originally due on April 15;
- Estimated tax payments originally due on April 15;
- Quarterly payroll and excise tax returns originally due on April 30;
- 2020 tax return for tax-exempt organizations (calendar-year basis) originally due May 17; and
- Estate, trust, gift, transfer-tax, and other returns with an original due date between February 11 and June 15, 2021.
Additionally, affected individuals now have until June 15, 2021 to make 2020 IRA contributions.
Generally, the extension does not apply to information returns or to employment and excise tax deposits. However, for deposits due between February 11 and February 26, 2021, penalties will be abated if the deposits are made by February 26, 2021.
A taxpayer who experienced a disaster-related casualty loss may elect to claim the loss on their federal income tax return for either the year in which the event occurred (in this case, 2021), or the prior year (2020). The deduction may include property losses not covered by insurance or any other form of reimbursement.
In the event records have been destroyed or are not accessible, the IRS will waive fees associated with requests for copies of previously filed returns. Taxpayers should denote “Texas – Severe Winter Storms” in bold letters at the top of the request (Form 4506).
Should you have questions regarding how the extension impacts you or your business, please contact one of our tax professionals and we will address your specific circumstances.