TEXAS TAXPAYERS GET A TAX FILING AND PAYMENT BREAK

The Internal Revenue Service has just announced (IR 2021-43) that taxpayers living in Texas are given an extension until June 15, 2021, to file their 2020 tax returns. The extension also applies to tax payments due between February 11 and June 15, 2021.

The filing extension applies to tax returns due between February 11 and June 15, 2021, and applies to most returns including individual, corporate, estate, trusts, partnership, S corporation, gift, and generation skipping transfer returns, Form 5500 series, annual information returns for tax-exempt organizations and employment and certain excise tax returns.

Penalties on payroll and excise tax deposits due on or after February 11, 2021, and before February 26, 2021, will be abated if deposits are made by February 26, 2021.

Not included in the extension are information returns, such as Forms W-2, 1094, 1095, 1097, 1098 or 1099 series or Forms 1042-S, 3921, 3922 or 8027.

In addition, taxpayers in Texas can claim uninsured or unreimbursed 2021 disaster-related casualty losses on their 2021 tax return or on their 2020 tax return even though the losses were in 2021. If a taxpayer claims a disaster-related casualty loss on their 2020 tax return, the top of the first page of the tax return should include the following words: “Texas-Severe Winter Storms” and the disaster declaration number: “FEMA 4586.”

If you have any questions regarding this blog post or any other tax-related matter, please contact Charles Pulman at (214) 749-2447 or cpulman@meadowscollier.com.