IRS - Disaster Relief for Texas Winter Storm Victims
The IRS announced that certain taxpayers affected by the February 2021 winter storms have an extended deadlines. In Drake Tax, a disaster designation can be entered on the MISC screen (see Related Links below for details). For more information, see the full IRS news release.
"TX-2021-02, February 22, 2021
TEXAS — Victims of winter storms that began February 11, 2021 now have until June 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.
Following the recent disaster declaration issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers will receive tax relief.
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. 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. It also applies to the quarterly payroll and excise tax returns normally due on April 30, 2021. In addition, it applies to 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 should call the telephone number on the notice to have the IRS abate the penalty. 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."
Per the TX Comptroller:
"Franchise taxpayers who need an extension beyond the June 15 date have these options:
- Non-electronic funds transfer (non-EFT) taxpayers who cannot file by June 15 may file an extension request on or before June 15. They must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported as due for the prior year, with the extension request. Non-EFT taxpayers who request an extension have until Nov. 15 to file their report and pay the remainder of the tax due.
- On or before June 15, taxpayers who are mandatory EFT payers may request an extension of time to file to Aug. 15. They must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported as due for the prior year, with the extension request. On or before Aug. 15, EFT taxpayers may request a second extension of time to file their report and must pay the remainder of any tax due with their extension request. The Aug. 15 extension request extends the report due date to Nov. 15. Any payments made after Aug. 15 will be subject to penalty and interest."