The Internal Revenue Service (IRS) has granted victims of this month’s winter storms in Texas an automatic extension to file federal income taxes until June 15, 2021. Most of Texas was recently hit with record-breaking freezing temperatures, causing power outages and frozen water pipes.
Following the disaster declaration by the Federal Emergency Management Agency (FEMA), the IRS is providing relief to the entire state of Texas as well as other states impacted by these winter storms (see the disaster relief page at IRS.gov for the list of included areas). The tax relief postpones various tax filings and payment deadlines that occurred starting on February 11. Affected individuals and businesses will have 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 2020 business returns due on March 15. This also allows affected taxpayers to make 2020 IRA contributions up until June 15 as well. The extended deadline also applies to quarterly estimated taxes due on April 15 and the quarterly payroll and excise tax returns normally due on April 30.
The IRS automatically provides filing and penalty relief to any taxpayer with an address of record located in the disaster area. In addition, the IRS will work with any taxpayer residing outside the disaster area but whose records are located in the affected area.
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 was incurred (2021) or the return for the prior year (2020). When claiming the loss, the FEMA declaration number—4586—should be written on the return to facilitate processing. (See IRS Publication 547 for additional information.)
TECHNICAL INFORMATION CONTACTS:
Mark L. Nachbar
Principal
Ryan
630.515.0477
mark.nachbar@ryan.com
Mary Bernard
Director
Ryan
401.272.3363
mary.bernard@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.