Alert

Texas Tax Relief: Extensions for Taxpayers Impacted by Texas Storms

The IRS issued guidance IR-2021-44, deferring tax filing and payment deadlines for taxpayers impacted by the winter storms in Texas. The tax relief follows President Joe Biden’s major disaster declaration during the weekend of February 20, 2021.

Additionally, the Texas Comptroller of Public Accounts issued guidance extending the due date for the Texas franchise tax reports. Both relief initiatives are detailed below.

Filing and Payment Updates 

Federal Income Tax

According to the guidance, taxpayers in all 254 Texas counties have until June 15, 2021, to file individual and business tax returns and make tax payments for filings or amounts due on or after February 11, 2021. Taxpayers also have until June 15 to make 2020 IRA contributions and make first-quarter estimated payments originally due April 15. Fiscal-year taxpayers with filing or payment deadlines occurring between February 11, 2021, and June 15, 2021, also qualify.

Unless specifically stated in Revenue Procedure 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits.  Penalties on deposits due on or after February 11 and before February 26 will be abated as long as the deposits were made by February 26.

Any notices received from the IRS that relate to late filing or payment should be resolved by calling the telephone number listed in the guidance.

Texas Franchise Tax

Additionally, the Texas Comptroller of Public Accounts is extending the due date for the Texas franchise tax report from the original due date of May 15, 2021, to June 15, 2021. This automatic extension applies to all franchise taxpayers. For taxpayers that are filing extensions with the Texas Comptroller, the extended due dates remain the same.

Non-electronic funds transfer taxpayers may request for an extension of time to file on or before June 15 to extend their franchise tax report to November 15. Mandatory electronic fund taxpayers may request an extension of time to file on or before June 15 to extend their franchise tax return to August 16. On or before August 16, a second extension of time may be filed by electronic fund transfer taxpayers to extend their franchise tax return to November 15. 

We’re Here to Help

If you have questions about your individual or business’s taxes and how the extensions could apply, please contact your Moss Adams professional.