Many people are victims of the Texas winter storms of February 2021. The Internal Revenue Service (IRS) has announced storm victims will have until June 21st, 2021 to file different types of tax returns. These are tax payments, business tax returns, individual tax returns, and more. Master Plan Tax Services here in Flower Mound TX is available to help anyone who is struggling to understand how this affects their individual tax situation.
The Federal Emergency Management Agency (FEMA) gave a disaster declaration concerning the winter storm. The victims of the storm in all Texas counties will be eligible for tax relief. This includes people and households impacted by the winter storm as well as anyone who has a business in any of the Texas counties. The disaster declaration by FEMA enables the IRS to postpone certain deadlines for tax payment as well as tax filing and more.
Storm victims will also have until the middle of June to make 2020 IRA contributions. This deadline applies to the first-quarter tax payment. These are payments normally required to be paid by the middle of April. It applies to excise tax returns and quarterly payroll taxes usually due at the end of April. This is also applicable to organizations that are tax-exempt and work on a calendar-year basis. They must have a 2020 return sent in by the middle of May. It applies to any penalties on deposits due after the 11th of February and before the 26th of February for 2021.
Disaster-related casualty losses can be claimed by taxpayers residing in areas that have been declared a federal disaster area. This can be done on their federal income tax return. It can be declared in the year the disaster occurred or the previous year. Individuals may also be able to deduct personal property that was lost and wasn’t covered by their insurance company or other types of reimbursements.
These are people who reside in the affected area. It also covers those who have their principal place of business in an area declared a disaster. Any person who visited the declared disaster and was injured or killed because of the disaster can get tax relief. Workers employed by established government agencies or philanthropic organizations associated with relief activities are also entitled to relief.
Any type of taxpayer who is contacted by the IRS for examination or collection should state how the disaster event affected them or their business. This can result in the IRS giving them proper consideration for their situation.
Those impacted by the disaster will have until the 15th of June to file most types of tax returns. This includes certain excise tax returns, individual, employment, trust income, tax-exempt organizations, partnerships, generation-skipping transfer tax returns, S corporation, gift, as well as trust returns. All of them will have an extended due date.
Farmer or Fisherman
The fisherman or farmers who have been impacted by the disaster won’t be required to pay penalties for failing to pay their 2020 estimated tax. To avoid the penalties, they must file their tax return for 2020 by the 15th of June 2020 and pay the full amount that is due.
It is important to realize that filing tax returns must be done properly. Master Plan Tax Services can help those who have been affected by the storms of February 2021. We know how to handle the new filing dates, IRS requirements, and more.