Taxpayers in Texas impacted by the recent winter storms will have until June 15, 2021, to file various federal individual and business tax returns and make tax payments.
The relief postpones various federal tax filing and payment deadlines that occurred starting on February 11. As a result, affected individuals and businesses will have until June 15, 2021, to file returns and pay taxes that were originally due during this period. This includes 2020 individual and business returns normally due on April 15, as well as various 2020 business returns due on March 15. Among other things, this also means that affected taxpayers will have until June 15 to make 2020 IRA contributions.
The June 15 deadline also applies to quarterly estimated income tax payments due on April 15 and the quarterly payroll and excise tax returns normally due on April 30. It also applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17.
Payroll tax deposits are not given an extension of time to pay, however, penalties on payroll and excise tax deposits due on or after February 11 and before February 26 will be abated as long as the deposits were made by February 26.
The IRS automatically provides filing and payment relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, 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 falling within the postponement period, the taxpayer should contact their Cherry Bekaert advisor for help getting the penalty abated.
In addition, the Texas Comptroller’s office has postponed the due date for 2021 state franchise tax reports (Accounting Year) from May 15 to June 15. This postponement is automatic and does not require taxpayers to file additional forms.
Despite these postponements, Cherry Bekaert encourages you to submit your tax information to us as early as you can. There are still advantages to filing your return by the original due date, including the ability to accelerate refunds, if applicable, and receive important cash flow planning information. Note that you can still file your return by the original due date but postpone the payment of any taxes until June 15.
The list of affected filings and payments, along with eligible localities, is available on the disaster relief page on irs.gov. Note that this relief only applies to taxpayers in Texas who were affected by the winter storms. For questions about any additional relief that may be available for affected taxpayers, contact your Cherry Bekaert advisor. For questions about relief available from other states in which Texas taxpayers may file, contact your Cherry Bekaert advisor or Cathie Shaw, State and Local Tax Leader.
We were fortunate to have avoided any severe damage to our Austin office and are available to assist our clients in any way we can.
