The IRS has extended until Sept. 1, 2016, the deadlines for most income tax returns, income tax payments and other time-sensitive actions for taxpayers affected by storms and flooding in federally declared disaster areas in Texas. In addition, the IRS will waive failure-to-deposit penalties for federal payroll and excise tax deposits due on or after April 17, 2016, as long as they were made by May 2, 2016.
The IRS relief applies to taxpayers who reside in or have a principal place of business in the counties of Austin, Colorado, Fayette, Grimes, Harris, Parker, Walker and Wharton. Other counties may be added as the Federal Emergency Management Agency (FEMA) assesses damages. Taxpayers whose books and records are located in an affected area are also eligible for relief. The relief applies to deadlines on or after April 17, 2016, and includes:
- Income tax returns due April 18, 2016
- Estimated tax payments due April 18, 2016, and June 15, 2016
- Payroll and excise tax returns for the second quarter of 2016
The IRS automatically identifies taxpayers located in covered disaster areas and applies the administrative relief. Eligible taxpayers whose residence or principal place of business is outside of an identified county must call the IRS disaster hotline at +1 866 562 5227 to be included.
The extended deadline of Sept. 1, 2016, applies to all the tax returns, tax payments and time-sensitive actions listed in Section 7508A, Treas. Reg. Sec. 301.7508A-1(c)(1) and Rev. Proc. 2007-56, which include the following:
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- Filing any income, estate, gift, employment or excise tax return except for the firearms tax, harbor maintenance tax, and alcohol and tobacco taxes
- Paying any income, estate, gift, generation-skipping tax or excise tax except for the firearms tax, harbor maintenance tax, and alcohol and tobacco taxes
- Filing Form 5500 series returns
- Contributing to qualified retirement accounts (including a rollover or reversing a rollover)
- Deadlines related to like-kind exchanges
- Filing a petition with the Tax Court
- Allowance of a credit or refund of any tax
- Filing a claim for credit or refund of any tax
- Bringing suit upon a claim for credit or refund of any tax
- Giving or making any notice or demand for the payment of any tax or regarding any liability to the United States related to any tax
- Collection by levy or otherwise of any outstanding tax liability
- Bringing suit by the United States or any officer on its behalf regarding any liability related to any tax
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