Victims of Texas winter storms get deadline extensions and other tax relief

Federal Due Date Postponed to June 15, 2021

On February 22, 2021 the IRS issued filing and payment relief for Texas residents impacted by the winter storm.  Filing deadlines falling on or after February 11, 2021 and before June 15, 2021 are automatically postposed through June 15, 2021 for all Texas residents.  This includes various 2020 business tax returns due on March 15 and 2020 individual and business returns due on April 15.  The postponement is automatic and taxpayer do not need to file any additional forms.  Taxpayers also have until June 15 to make 2020 IRA contributions.

The June 15, 2021 deadline applies to the first quarter estimated tax payment due on April 15, 2021, and to the quarterly payroll and excise tax returns normally due on April 30, 2021. In addition, penalties on deposits due on or after February 11, 2021 and before February 26, 2021, will be abated as long as the tax deposits were made by February 26, 2021. The filing relief applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17, 2021.


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 Texas Franchise Due Date Postponed to June 15, 2021

On February 25, 2021, the Texas Comptroller announced the due date for 2021 Texas Franchise reports is extended from May 15 to June 15, 2021.  Taxpayers do not need to file any additional forms.  The due date extension is automatic and applies to all franchise taxpayers.

Taxpayers who obtained a Paycheck Protection Plan Loan and qualified for forgiveness should defer filing tax due franchise reports until the Texas Legislature has decided the treatment of the forgiveness of debt for franchise tax purposes.  Under current Texas state law the forgiveness of debt income is to be included in income for purposes of calculating franchise tax. Rep. Geren and Sen. Hancock have filed bills to exclude PPP loan forgiveness from franchise tax revenue calculations. See S.B. No. 372 and H.B. 1195. These will be ongoing issues as new batches of PPP loans are administered by the SBA in 2021.  Stay tuned!

IRS Notice CP59

On February 18, 2021, the IRS recently issued the following statement regarding CP59 notices sent out in error.  You can disregard the notice if you filed a 2019 Form 1040.  Please feel free to contact us at 512-930-4090 if you have any questions.

Earlier this month, the IRS issued notices to approximately 260,000 taxpayers stating they haven’t filed their 2019 federal tax return. These notices, referred to as CP59 notices, are issued yearly to identified taxpayers who have failed to file a tax return that was due the prior calendar year (Tax Year 2019). Due to pandemic related shutdowns, the IRS has not completed processing all 2019 returns at this time. Therefore, the CP59 notices should not have been sent because some portion of the recipients may actually have filed a return that is still being processed. People who filed their 2019 return but nevertheless received the CP59 notice, can disregard the letter and do not need to take any action. There is no need to call or respond to the CP59 notice because the IRS continues to process 2019 tax returns as quickly as possible. The IRS regrets any confusion caused by this mailing.

The IRS encourages those who have yet to file their 2019 return to promptly do so.

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