TEXAS - Victims of winter storms that began Feb. 11 now have until June 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced at the end of February.
Following the recent disaster declaration issued by the Federal Emergency Management Agency, the IRS announced that affected taxpayers will receive tax relief. Individuals and households that have been affected by severe winter storms that reside or have a business in any of Texas' 254 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 Feb. 11, 2021, and before June 15, 2021, are postponed through June 15, 2021.
The IRS says 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 estimated tax payment due on April 15.
In addition, the IRS says penalties on deposits due on or after Feb. 11, 2021 and before Feb. 26, 2021, will be abated as long as the tax deposits were made by Feb. 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 should call the telephone number on the notice to have the IRS abate the penalty.
Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred or the prior year.
Individuals may deduct personal property losses that are not covered by insurance or other reimbursements.
The IRS says affected taxpayers claiming the disaster loss on a 2020 return should put the Disaster Designation, "Texas – Severe Winter Storms," in bold letters at the top of the form. Be sure to include the disaster declaration number, FEMA 4586, on any return.
Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.
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.
Taxpayers may download forms and publications from the official IRS website, IRS.gov.