IRS provides relief for taxpayers affected by winter storms in Texas

Relief for taxpayers affected by winter storms in Texas

The IRS today announced it was providing relief for taxpayers affected by the winter storms in Texas that began February 11, 2021.

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According to today’s IRS release—TX-2021-02 (February 22, 2021)—these affected taxpayers in Texas now have until June 15, 2021, to file various individual and business tax returns and make tax payments. The IRS relief follows a recent disaster declaration issued by the Federal Emergency Management Agency.

The IRS announced that affected taxpayers will receive tax relief, as follows:

  • 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. Taxpayers also have until June 15, 2021, to make 2020 IRA contributions.
  • The relief providing the June 15, 2021 deadline applies with regard to:
    • The fourth quarter estimated tax payment due on April 15, 2021
    • The quarterly payroll and excise tax returns normally due on April 30, 2021
    • Tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17, 2021

In addition, penalties on deposits due on or after February 11, 2021, and before February 26, 2021, will be abated as long as the tax deposits were made by February 26, 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 is directed to call the telephone number on the notice to have the IRS abate the penalty. 

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