Earlier today (22 February, 2021) the Internal Revenue Service (IRS) announced that the tax deadline has been extended till June 15 in light of the recent winter storm. Taxpayers in Texas will now have until June 15 to file individual and business tax returns and make tax payments.
FEMA (Federal Emergency Management Agency) recently issued a disaster declaration for Texas following the severe winter weather in the week of the 15th of February. Following the FEMA announcement the IRS declared the relief for taxpayers in Texas. The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov
According to IRS – The tax relief postpones various tax filing and payment deadlines that occurred starting on February 11. As a result, affected individuals and businesses will have until June 15, 2021, to file returns and pay any taxes that were originally due during this period. This includes 2020 individual and business returns normally due on April 15, as well as various 2020 business returns due on March 15. Among other things, this also means that affected taxpayers will have until June 15 to make 2020 IRA contributions.
The June 15 deadline also applies to quarterly estimated income tax payments due on April 15 and the quarterly payroll and excise tax returns normally due on April 30. It also applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17.
Even though the tax deadline has been pushed out, experts say that it is a good idea to file your tax returns as soon as feasible, especially if you think you are eligible for a stimulus payment based on your 2020 income. The 2020 tax return is a way to prove eligibility by reporting your 2020 income to the IRS. For more details on the topic of the third stimulus check refer to a quick guide that we recently published. It gives more information about eligibility, timelines and helpful tips about the third stimulus payment.
