As a result of the recent winter storm, the IRS announced on February 22, 2021, that residents of all Texas counties and/or taxpayers who have a business in Texas would generally have until June 15, 2021, to file and pay their federal income tax. This extension includes income tax returns due on March 15 and April 15 and covers taxpayers whose tax records are in Texas. Please note that this relief does not apply to all taxes—payroll taxes, for instance, have limited relief. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address on record as being located in the designated disaster area.
There are many reasons to file before the extended deadline, such as requesting a stimulus payment, complying with bank requirements, or requesting a refund. Please also note at this time it is unknown which states will conform to the federal filing extension, so if you do have any state filing requirements, those returns may still be due on the regular filing dates.
If you incurred unreimbursed casualty losses due to this winter storm, the damages caused are eligible for deduction on your individual tax return for either 2020 or 2021. Please reach out to your CRI advisor for guidance in determining which year will provide you with the most effective tax reduction.
Please also be aware that this disaster relief includes many other provisions, including an extension until June 15 for 2020 IRA contributions and an extension until June 15 to make the estimated tax payments due on March 15 or April 15. As always, your CRI professionals are here to discuss your specific situations and advise on any questions that you may have regarding this extended deadline or any other tax matters.
For more information regarding business interruption services and disaster planning resources, please visit our Disaster Preparation and Recovery page. We are working to ensure that all of our information is as up-to-date as possible to keep you and your business informed.