As you may know by now, individual taxpayers, including single-owner LLCs, and sole proprietors who normally have to file their tax returns by April 15 will have until May 17, 2021, to file their 2020 taxes. For Texas, Louisiana, and Oklahoma residents and businesses, the IRS deadline to file a federal tax return has been extended to June 15, 2021.
The Internal Revenue Service and Treasury Department announced on March 17, 2021, that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. For more updates, you can visit the IRS website.
What does this mean for you?
- You do NOT need to call the IRS
- You do NOT need to file any forms
- You DO need to pay Federal income tax by May 17, 2021, to avoid interest and penalties
- If you owe money to the IRS, you can delay payment until May 17, 2021
Due to the winter storm that left many folks without water and power, the IRS is extending the filing deadline for residents to provide more time to complete their returns. If you are a Texas resident and business, The IRS deadline to file a federal tax return has been extended to June 15, 2021.
What does this include?
- 2020 business returns – these are normally due on March 15
- Individual and business returns – these are normally due on April 15
- 2020 IRA contributions are also extended to June 15
Do you owe an estimated income tax payment?
Originally due on February 11, 2021, and before June 15, 2021 – which is now postponed through June 15, 2021, no penalties will be applied for failing to pay estimated tax installments – as long as payments are paid on or before June 15, 2021 deadline.
Do you live in Louisiana or Oklahoma?
The good news is the tax extension provided to Texas, also applies to both your individual and business tax returns to make payments if you live in Oklahoma or Louisiana due to the winter storms.
FEMA declared disaster relief for Texas, Oklahoma, and Louisiana. These states have until June 15, 2021, to file various individual and business tax returns and make tax payments. This extension to May 17 does not affect the June deadline.
What about Texas Franchise Taxes?
The Texas Comptroller of Public Accounts is also extending the due date for 2021 Texas franchise tax reports from May 15 to June 15, 2021. This aligns with the IRS extensions noted above for all Texas businesses and residents.
This extension applies to ALL franchise taxpayers in Texas. You do not need to file any additional forms.
What About Casualty Losses?
Texas, Oklahoma, and Louisiana residents have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred 2021 or the prior year, 2020.
Any Other Relief?
If you need to request copies of previously filed tax returns, the IRS will waive the normal fees for these requests. According to the IRS, taxpayers should put the assigned Disaster Designation “Texas – Severe Winter Storms,” in bold letters at the top of Form 4506, Request for Copy of Tax Return , or Form 4506-T, Request for Transcript of Tax Return , as appropriate, and submit it to the IRS.
For more details, visit the IRS website.
What if I’m not in any of These States?
Most states have followed the IRS and moved the deadline for income tax returns to May 17, 2021. However, a handful of states still have different deadlines that impact millions of taxpayers.
Individuals in Texas, Alaska, Nevada, Florida, South Dakota, Washington, Wyoming, and New Hampshire are NOT required to file state income tax.
For the latest information, visit the IRS website.