June 11th, 2024 | Update to June 4, 2024, Whitley Penn Tax Alert: The IRS has updated News Release TX 2024-13 to include Austin, Bosque, Brown, Caldwell, Clay, Coleman, Concho, Coryell, Dallas, Falls, Freestone, Grimes, Hamilton, Hockley, Houston, Kaufman, Lampasas, Lee, Leon, Limestone, Madison, Mills, Newton, San Saba, Smith, Van Zandt, and Washington counties.  Effective immediately, the relief provisions described in the original release below will also apply to affected taxpayers in these counties.

June 4th, 2024 -The IRS issued News Release TX 2024-13 announcing tax relief for Texas taxpayers that were affected by severe storms, straight-line winds, tornadoes, and flooding that began on April 26, 2024.

The relief is available for individuals residing or businesses (including tax-exempt organizations) whose principal place of business is located in a covered disaster area in the following Texas counties:  Bell, Calhoun, Collin, Cooke, Denton, Eastland, Guadalupe, Hardin, Harris, Henderson, Jasper, Jones, Lamar, Liberty, Montague, Montgomery, Polk, San Jacinto, Trinity, Tyler, Walker, and Waller.  The relief is also available to individuals that do not reside or businesses that are not located in those counties if the records necessary to meet required federal tax filing deadlines are located there.

The affected taxpayers have until November 1, 2024, to file various federal tax returns and make federal tax payments with original or extended due dates falling on or after April 26, 2024, and before November 1, 2024.

The postponed deadline applies to several federal information and tax returns including individual, corporation, and estate and trust income tax returns, partnership returns, Subchapter S corporation returns, tax-exempt organization annual information returns, certain employment and excise tax returns, and estate, gift, and generation-skipping transfer tax returns. The deadline also applies to quarterly estimated tax payments due on June 17, 2024, and September 16, 2024, and quarterly payroll and excise tax returns normally due on April 30, 2024, July 31, 2024, and October 31, 2024. The IRS will abate penalties on payroll and excise tax deposits due on or after April 26, 2024, and before May 13, 2024, if the deposits were made by May 13, 2024.

The IRS will automatically apply filing and payment penalty relief to taxpayers residing or located in the disaster area. Affected taxpayers not residing or located in the disaster area that have tax records located there should call the IRS disaster hotline at (866) 562-5227 to request relief. Affected taxpayers that receive a late filing or payment penalty notice with an original due date falling in the postponement period should contact the IRS to request abatement.

Disclaimer: This tax alert is designed only to provide general information regarding its subject matter and should not be construed as tax, accounting, or legal advice to any specific person or entity. The statutes, authority, or other law discussed or cited in the alert are subject to change and Whitley Penn assumes no obligation to update the reader of any changes. Any advice or opinion regarding the application of the subject matter for a specific person or entity should be provided by a competent professional tax advisor based on the application of the appropriate law and authority to the facts and circumstances applicable to that person or entity.

Whitley Penn is continually monitoring tax and economic developments and will send out additional alerts in the future. In the interim, if you have any questions or require additional information, please contact your Whitley Penn tax advisor.