The February Winter Storm hit the tax deadline for small businesses hard.

What you’ll discover:

Which states have granted small company taxpayers a filing extension?
What is the new deadline for winter storm tax filers?
Is the 2021 winter storm tax extension available to people and businesses?
Is there tax assistance available for victims of the February storm?
Are impacted taxpayers’ state and local tax deadlines likewise extended?

The winter storms that slammed Texas and other states starting February 11, 2021 made news throughout the globe. However, the strength of the storms, along with an infrastructure unable to meet the accompanying utility and service demands, resulted in loss of life and severe destruction in many areas. Realizing that victims might benefit from help, the IRS extended certain taxpayers’ tax filing and payment deadlines.

Which states have granted small company taxpayers a filing extension?

The IRS tax filing extension originally extended to taxpayers residing anywhere in Texas. Moreover, the extension is open to anybody living outside of Texas in a region where a comparable FEMA federal disaster proclamation has been issued. The IRS Disaster Relief website includes a list of all current regions, which currently include people and companies in all 77 counties of Oklahoma and all 64 parishes of Louisiana.

A tax filing extension is also allowed for humanitarian, charitable, or governmental employees working in the covered region, as well as anybody visiting the covered area when the storm hit and was killed or wounded as a consequence.

If your home or primary place of business was damaged by the winter storm but you do not reside in a covered disaster region, you may be eligible for an extension if the documents you need to satisfy your tax filing deadline are in a covered disaster area. Taxpayers should contact 866-562-5227 to seek tax relief consideration from the IRS under certain situations.

What is the new deadline for winter storm tax filers?

Instead of the initial December 31, 2020 tax filing and payment deadline for individual and corporate taxes, winter storm tax filers now have until June 15, 2021 to submit returns and pay any amounts owing to the IRS. This extension pertains to tax deadlines that were originally scheduled to fall between February 8, 2021 and June 15, 2021, such as individual income taxes due on April 15, company returns due on March 15, and quarterly payroll and excise tax reports.

The deadline for self-employed persons to submit their first quarter expected tax payments, which include projected income tax and self-employment tax, has also been extended to June 15, 2021.

Is the 2021 winter storm tax extension available to people and businesses?

Yes! Individuals who reside in a covered disaster region, as well as any firm whose primary place of business is in a covered disaster area, are eligible for the IRS tax deadline extension. It is not required for residents of Texas, Oklahoma, or Louisiana, or companies situated in these states, to seek this extension; the IRS automatically identifies and provides the relief to individual and company taxpayers in these locations.

Is there tax assistance available for victims of the February storm?

In addition to the postponement of the deadline for filing and paying taxes, people in disaster-affected regions have until June 15, 2021 to make 2020 IRA contributions, which may assist lessen their total tax costs.

Penalties that would have otherwise applied for deposits due between February 8 and February 23, 2021 are likewise waived, as long as the deposits are made before February 23, 2021. In addition, taxpayers in impacted regions who want copies of previously filed tax returns may acquire them free of charge.

Lastly, individuals and companies that sustained disaster-related losses for which they were not insured or paid may be allowed to claim these losses on their 2020 tax returns by mentioning the FEMA declaration number, rather than waiting until 2021.

Are impacted taxpayers’ state and local tax deadlines likewise extended?

The above-mentioned tax deadline extensions and accompanying tax relief measures apply only to federal taxes. If you or your company is obliged to file and pay state or local taxes, check with those tax authorities to see whether they have also delayed appropriate deadlines or provide tax relief.