The US Internal Revenue Service (IRS), on Tuesday, 28 May, 2024, in a release (TX-2024-13) announced tax relief for individuals and businesses in Texas affected by severe storms, straight-line winds, tornadoes, and flooding that began on 26 April, 2024.
Taxpayers now have until 1 November, 2024, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in: Austin, Bell, Bosque, Brown, Caldwell, Calhoun, Clay, Coleman, Collin, Concho, Cooke, Coryell, Dallas, Denton, Eastland, Ellis, Falls, Freestone, Grimes, Guadalupe, Hamilton, Hardin, Harris, Henderson, Hockley, Houston, Jasper, Jones, Kaufman, Lamar, Lampasas, Lee, Leon, Liberty, Limestone, Madison, Mills, Montague, Montgomery, Navarro, Newton, Polk, Smith, San Jacinto, San Saba, Smith, Terrell, Trinity, Tyler, Van Zandt, Walker, Waller, and Washington counties qualify for tax relief.
The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after 26 April, 2024, and before 1 November, 2024, are granted additional time to file through 1 November, 2024.
As a result, affected individuals and businesses will have until 1 November, 2024, to file returns and pay any taxes that were originally due during this period.
The 1 November, 2024, deadline also applies to any payment normally due during this period, which includes quarterly estimated tax payments due on 17 June, 2024 and 16 September, 2024; and quarterly payroll and excise tax returns typically due on 30 April, 2024, 31 July, 2024, and 31 October, 2024.
In addition, penalties on payroll and excise tax deposits due on or after 26 April, 2024, and before 13 May, 2024, will be abated as long as the tax deposits were made by 13 May, 2024.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline (866-562-5227) to request this tax relief.