IRS Announces Tax Relief for Texas Severe Weather Storm Victims

The winter weather that swept through Texas earlier this month left behind widespread damage. But as temperatures returned to normal, we got some much-needed good news: the Internal Revenue Service announced that victims of the winter storms that began on February 11, 2021 now have extra time to file various individual and business tax returns and make tax payments. June 15, 2021 is the new filing deadline.

With our team at full strength, JRBT is continuing to handle this tax season like any other. While the extension offers some flexibility, we are continuing to work toward the goal of having returns prepared and extensions filed as if April 15 were still the deadline. (As a practical matter, April 15 continues to be the deadline for our clients outside of Texas.)

Since we have a large number of returns in process and more coming in each day, we encourage all of our clients to get their information to us as soon as it’s reasonably possible. We believe the best way we can take care of our clients, especially under these unusual circumstances, is to be as proactive as we can. If you have questions about the deadline extension, please contact us at 254-776-4190.

Following is the information the IRS released in their announcement earlier this week that affected taxpayers will receive tax relief:

Individuals and households affected by severe winter storms that reside or have a business in all 254 Texas counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after February 11, 2021, and before June 15, 2021 are postponed through June 15, 2021. This includes various 2020 business tax returns due on March 15 and 2020 individual and business returns due on April 15. Taxpayers also have until June 15 to make 2020 IRA contributions.

The June 15, 2021 deadline applies to the first quarter (editor’s note: in the initial IRS announcement, they listed the the deadline applies to fourth quarter which JRBT believes to be incorrect and so we updated this statement to read that the deadline applies to the first quarter) estimated tax payment due on April 15. It also applies to the quarterly payroll and excise tax returns normally due on April 30, 2021.

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 that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty. For information on services currently available, visit the IRS operations and services page at IRS.gov/coronavirus.

The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.