Industry News

IRS and State of Texas Announce Tax Relief for Storm Victims

Jun 6, 2024 | Business, Individuals, News, Taxes

The Internal Revenue Service (IRS) has announced tax relief for individuals and businesses in Texas affected by severe storms, straight-line winds, tornadoes, and flooding that began on April 26, 2024. These taxpayers now have until November 1, 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 residing or having businesses in Bell, Calhoun, Collin, Cooke, Denton, Eastland, Guadalupe, Hardin, Harris, Henderson, Jasper, Jones, Lamar, Liberty, Montague, Montgomery, Polk, San Jacinto, Trinity, Tyler, Walker, and Waller counties qualify for tax relief.

Extended Deadlines and Relief Details

The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers in the disaster area. Key points include:

  • Extended Deadlines: Taxpayers have until November 1, 2024, to file returns and pay taxes originally due between April 26, 2024, and November 1, 2024.
  • Quarterly Payments: This includes quarterly estimated tax payments due on June 17, 2024, and September 16, 2024, as well as quarterly payroll and excise tax returns due on April 30, 2024, July 31, 2024, and October 31, 2024.
  • Penalty Abatement: Penalties on payroll and excise tax deposits due on or after April 26, 2024, and before May 13, 2024, will be abated if the deposits are made by May 13, 2024.

Steps for Affected Taxpayers

  • Automatic Identification: The IRS will automatically identify taxpayers in the covered disaster area and apply for filing and payment relief.
  • Out-of-Area Requests: Affected taxpayers outside the disaster area should call the IRS disaster hotline at 866-562-5227 to request tax relief.

Casualty Losses and Additional Relief

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year of the event or the prior year. For details, see Publication 547 and Form 4684.

Special Provisions

  • Waived Fees: The IRS will waive fees for requests for copies of previously filed tax returns. Use FEMA disaster declaration number 4781-DR on Form 4506 or Form 4506-T.
  • Exclusions from Gross Income: Qualified disaster relief payments are generally excluded from gross income.
  • Retirement Plans: Additional relief may be available for those participating in retirement plans or IRAs, including special disaster distributions and hardship withdrawals.

State of Texas Tax Relief

Governor Greg Abbott issued a disaster proclamation declaring a state of disaster in certain counties on April 30, 2024, as amended on May 2, May 7, May 15, and May 20, 2024. The proclamation certified that the severe storms and flooding that began on April 26, 2024, caused widespread and severe property damage, injury, or loss of life or property. The list of affected counties can be found at: https://comptroller.texas.gov/disaster-relief/

Request an Extension

Taxpayers affected by the disaster may be eligible for an extension of time to file and pay Texas taxes. Extensions are available upon request. To request an extension, provide the following information to ExtensionRequests@cpa.texas.gov:

  • Taxpayer name
  • Taxpayer number
  • Tax type(s) for which the extension is requested
  • Affected filing period(s)
  • Name and phone number of the person making the request

Need Assistance?
If you have questions or need assistance with these provisions, please contact the ABIP professional you work with or our office at 713.954.2002. We are here to help you through this difficult time.