Texas Victims of Severe Storms, Flooding Get Tax Relief (TX-2018-05)

The president has declared a federal disaster area in Texas. The disaster is due to severe storms and flooding beginning on June 19, 2018. The disaster area includes the following counties:

  • Cameron and
  • Hidalgo.

As a result, taxpayers who live or have a business in the disaster area may qualify for tax relief.

Texas Filing Deadlines Extended

The IRS extended certain deadlines falling on or after June 19, 2018, and before October 31, 2018, to October 31, 2018. The extension covers filing for most returns, including:

  • individual, corporate, estate and trust income tax returns;
  • partnership and S corporation income tax returns;
  • estate, gift and generation-skipping transfer tax returns;
  • the Form 5500 series returns, and
  • employment and certain excise tax returns.

However, the extension does not include information returns in the Form W-2, 1098, or 1099 series or Forms 1042-S or 8027.

Texas Payment Deadlines Extended

Also, the relief includes extra time to make tax payments. This includes estimated tax payments due on or after June 19, and before October 31, 2018.

Also, taxpayers have until October 31, to perform other time-sensitive actions due on or after June 19, and before October 31, 2018. This includes an additional filing extension for:

  • businesses with extensions expiring on September 17, 2018, and
  • individuals with extensions expiring on October 15, 2018.

Further, the IRS excused late penalties for employment and excise tax deposits due on or after June 19 and before July 5. But, the taxpayer must make the deposits by July 5, 2018.

Casualty Losses

In addition, affected taxpayers can claim disaster-related casualty losses on their federal income tax return. Taxpayers may get relief sooner by claiming their losses on their 2017 return.

Individuals may deduct personal property losses not covered by insurance or other reimbursements. Taxpayers claiming a disaster loss on their 2017 return should write the disaster designation:

“Texas, Severe Storms and Flooding”

in red at the top of the return. This will allow the IRS to speed refund processing.

Old Returns

Finally, the IRS will provide affected taxpayers with copies of prior year returns without charge. To get this expedited service, taxpayers should:

  1. add the disaster designation at the top of Form 4506, Request for a Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, and
  2. submit the request to the IRS.

Texas Disaster Relief Notice (TX-2018-05)

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup