Tax Alert: Texas Taxpayers Receive Deadline Extension

Good news for Texas. On February 22, 2021, the IRS announced that 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 certain tax payments.

According to the statement, taxpayers and tax preparers affected by the winter storms that reside or have a business (including tax-exempt organizations) in any of the 254 Texas counties (covered disaster area) qualify for this tax relief. This includes various 2020 tax returns, including business returns due March 15, individual and business returns due April 15, and nonprofit returns due May 17.

Here is a summary of what the extended deadlines include:

  • Individual Tax Returns
  • Business Tax Returns (Partnership, S Corporation, and Corporate)
  • Estate and Trust Tax Returns
  • Tax-Exempt Organizations (operating on a calendar-year basis)
  • Quarterly Income Tax Payments
  • Employment/Payroll and Excise Tax Filings
  • Gift, and Generation-skipping Transfer Tax Returns
  • Key Deadlines for 1031 Exchange

Additionally, taxpayers also have until June 15 to make their 2020 IRA Contributions

Please note: the postponement of tax filing does NOT apply to:

  • Forms W-2, 1094, 1095, 1097, 1098 or 1099
  • Forms 1042-S, 3921, 3922 or 8027
  • Payroll and Excise Tax Deposits

Update — Texas Comptroller’s Office Also Extends Franchise Tax Deadline!

The deadline for 2021 franchise tax reports was recently extended from May 17  to June 15, 2021. This decision follows after the most recent Winter Storm Uri tax relief update on February 22, 2021. This extension applies to all franchise taxpayers. It is automatic, and taxpayers do not need to file any additional forms. Here is a helpful link for the latest information: Texas Comptroller’s Office

Should the IRS offer subsequent updates regarding tax disaster relief, Holtzman’s Tax team will continue to keep you apprised of timely developments that may impact your business.

Affected taxpayers who reside or have a business located outside of the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Looking for Tax Expertise? We’re Here to Help

With a depth of experience in federal, state, and local taxation issues and a wealth of experience across industries, our team of tax advisors will help you to take advantage of every opportunity to minimize your tax liability and reinvest in your business. Please reach out to our Tax team if you need tax assistance or have questions about how this deadline extension will impact your business.

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Sources: IRS, Texas Comptroller’s Office, PKF, ATKG LLP

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