The Internal Revenue Service (IRS) issued guidance granting relief to those taxpayers affected by the Texas winter storms. Taxpayers will have until June 15, 2021, to file various individual and business tax returns and to make tax payments.
The current qualifying area is the entire state of Texas. The IRS granted this postponement of certain deadlines under its section 7508A authority for those individuals and businesses located in areas affected by a federally declared disaster. Taxpayers in other states impacted by these winter storms that receive similar FEMA disaster declarations will automatically receive the same filing and payment relief. The current list of eligible localities is available on the IRS disaster relief page.
The IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
The tax relief postpones various tax filing and payment deadlines that occurred starting on Feb. 11. Affected individuals and businesses will have until June 15, 2021, to file returns and pay any 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. In addition, penalties on payroll and excise tax deposits due on or after Feb. 11 and before Feb. 26 will be abated as long as the deposits are made by Feb. 26.
The IRS disaster relief page contains further details on other returns, payments and tax-related actions qualifying for the additional time.