houston flood

On April 26, 2016, the IRS announced that that those who were affected by the massive flooding in the Houston, Texas area will have an extension on their return deadline. Residents have until Sept 1st to file their returns and pay any taxes due. Also, for any workers who played a role in assisting the relief activities, and who are affiliated with a recognized government or philanthropic organization also qualify for relief.

Counties with Special Tax Relief

  • Fayette County
  • Grimes County
  • Harris County
  • Parker County

The IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.

New Deadlines for Postponements

The tax relief postpones various tax filing and payment deadlines that occurred starting on April 17, 2016. As a result, affected individuals and businesses will have until Sept. 1, 2016 to file their returns and pay any taxes due. This includes 2015 income tax returns normally due on April 18.  It also includes the April 18 and June 15 deadlines for making quarterly estimated tax payments. A variety of business tax deadlines are also affected including the May 2 and Aug. 1 deadlines for quarterly payroll and excise tax returns.

Waivers

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. In addition, the IRS is waiving the following:

  • Late-deposit penalties for federal payroll
  • Excise tax deposits normally due on or after April 17 and before May 2 if the deposits are made by May 2, Details on available relief can be found on the disaster relief page on IRS.gov.

How to Ensure You Receive Relief

Taxpayers do not need to contact the IRS to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

Claims for Individuals and Businesses

Individuals and businesses who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (the 2016 return normally filed in early 2017), or on an original or amended return for the prior year—tax year 2015 in this situation. See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by severe storms and flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

 

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