The IRS Extends the Texas Taxpayer Deadline to June 15th
March 12, 2021 | IRS, R&D Tax Credit, Tax Credit, Tax Refund
During the week of February 15th, Texans experienced an unprecedented winter storm that left millions without power and water throughout below-freezing temperatures. On February 19th, 2021 the Federal Emergency Management Agency (FEMA) officially announced a disaster declaration for the winter storms in Texas which made way to the IRS announcing tax relief for all affected Texas taxpayers. This tax relief comes in the form of a two-month emergency extension to the tax filing deadline for each of the 254 counties in Texas. The emergency extension covers:
2020 individual and business returns typically due on April 15th;
2020 business returns due on March 15th;
Quarterly estimated income tax payments due April 15th;
Quarterly payroll and excise tax returns normally due on April 30;
Tax-exempt organizations operating on a calendar-year basis that have tax returns due on May 17th; and
2020 IRA contributions.
Since this extension is automatically available to each taxpayer with an IRS address of record located in Texas, there is no need to file an additional document. If you receive a late filing or late payment penalty notice during the extension period, call the number on the form. Likewise, if you are a taxpayer in another state that was affected by the winter storms and received similar FEMA disaster declarations as Texas, you will automatically receive the same filing and payment relief as defined on the IRS disaster relief page.
On top of utility failure, several homes and businesses experienced significant loss during the winter storms. If your company falls in this category and you have an uninsured or unreimbursed loss, you may be able to claim the loss on your future 2021 return or on the 2020 return that will be filed by June 15th of this year. Each return will need to have the appropriate FEMA declaration number, 4586, on any return claiming a loss according to the IRS.
More time for Texans to file gives you more time to look into additional tax savings including the Research and Development tax credit. When looking at qualification for the R&D credit, activities involving evaluating or developing new or improved products, processes, or software may be eligible for the credit.
Probity Tax Recovery has spent countless hours developing a process on how to calculate the R&D credit efficiently and accurately for each eligible client. Our experienced team of tax professionals are equipped to walk you through claiming these benefits according to your unique tax position and in a timely manner. Schedule a time to speak with us here.