MLR

IRS Delays Tax Filings and Payments for Individuals and Businesses in Texas

The IRS issued News Release IR-2021-43 on February 22, 2021 providing victims of this month’s winter storms in Texas extended filing deadlines until June 15, 2021, to file various individual and business tax returns and to make tax payments.

The IRS is providing this relief to the entire state of Texas, and the tax relief postpones many IRS tax filing and payment deadlines that occurred starting February 11th, including these common deadlines:

  • 2020 business tax returns normally due March 15
  • 2020 individual and business tax returns normally due April 15
  • 2021 quarterly estimated income tax payments normally due April 15
  • 2020 IRA contributions normally due April 15
  • 2021 quarterly payroll and excise tax returns normally due April 30
  • 2020 tax exempt organization returns normally due May 15

In addition, 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 are made by February 26, 2021.

At this time, the late filing relief does not appear to apply to certain information reporting forms, including returns in the W-2, 1094, 1095, 1098 or 1099 series, as well as Forms 1042-S, 3921, 3922, or 8027, so businesses should aim to file those forms timely.

The IRS automatically provides filing and payment relief to any taxpayer with an IRS address of record located in the disaster area.  This relief also applies to taxpayers in other states impacted by these winter storms that receive similar FEMA disaster declarations.  The current list of eligible localities is available on the disaster relief page on IRS.gov.

Many businesses and individuals located in Texas have state tax filing obligations as well. In prior disaster situations, states have generally allowed late filing relief for taxpayers who have received a federal disaster relief extension. Potential state deadline extension guidance may become available in the future, but for now, we would encourage you to discuss any state tax filing deadlines with your tax provider.

Maxwell Locke & Ritter’s experienced tax professionals can help you with any questions you might have regarding the items above. Please contact us today if you need assistance.

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