IRS Announces Tax Relief for Texas Severe Winter Storm Victims

On February 22, 2021, the IRS announced that 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. Individuals and households affected by severe winter storms that reside or have a business in all 254 Texas counties qualify for tax relief. 

The June 15, 2021 deadline applies to:

  • 2020 business returns due on March 15; 
  • 2020 individual and business returns normally due on April 15; 
  • Quarterly estimated tax payments due on April 15; 
  • Quarterly payroll and excise tax returns normally due on April 30; and 
  • Tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17, 2021. 

Additionally, penalties on payroll and excise tax 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. Taxpayers also have until June 15 to make 2020 IRA contributions.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area and 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 call the number on the notice to have the penalty abated.

In addition, 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.

In the event a tax credit becomes available, we recommend retaining payroll records if your business was rendered inoperable due to the winter storm. The records should include dates of inoperability and wages paid during the time the business was inoperable.

The IRS disaster relief page provides details on other returns, payments and tax-related actions qualifying for the additional time. Please contact your Melton & Melton Tax Advisor or email us if you have any questions or require any additional information.