Individuals and businesses in Texas that were affected by severe storms, hails, tornadoes and flooding that began on April 26th, 2024 may qualify for tax relief according to IRS’s announcement on May 28th, 2024. These taxpayers have now until November 1st, 2024 to file multiple federal tax returns and make tax payments.
According to disaster declaration issued by the Federal Emergency Management Agency
(FEMA), individuals and households that live or have a business in Calhoun, Collin, Cooke, Denton, Eastland, Guadalupe, Hardin, Harris, Jasper, Jones, Lamar, Liberty, Montague, Montgomery, Polk, San Jacinto, Trinity, Walker and Waller counties qualify for tax relief.
The declaration from FEMA is the basis for the IRS to postpone certain tax related matter deadlines for
taxpayers who reside or have a business in the disaster areas. For example, any deadlines falling on or after April 26th, 2024, and before November 1st, 2024, are given additional time to file or pay certain taxes but no later than November 1st, 2024. However, payroll tax deposit is not a part of the relief and must be remitted normally.
The November 1st, 2024, deadline is also applicable to any payment that usually due during this period, including
the quarterly estimated tax payments due on June 17, 2024 and Sept. 16, 2024, and the quarterly payroll tax returns normally due on April 30, 2024, July 31, 2024 and Oct. 31, 2024. Penalties on payroll tax deposits due only between April 26, 2024 and May 13, 2024 will be waived as long as the tax deposits were made by May 13, 2024.
If an impacted taxpayer receives a late filing or payment penalty notice from the IRS with an original due date that falls within the postponement period, they should call the phone number provided on the notice to request for the removal of such penalty.
The IRS announces that department will automatically identify taxpayers located in the covered disaster area and apply the relief based on previous tax filings. However, other affected taxpayers who live or have a business located outside the covered disaster areas can also call the IRS disaster hotline at 866-562-5227 to see whether your current situation may qualify any relieves or not. because FEMA designated these counties as federal disaster areas, casualty losses can be deducted on both business and individual tax returns for 2024. Additionally, if an election is made, the loss can be claimed on 2023 returns instead.