IRS Announces Tax Relief to Texans due to Severe Winter Weather

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Jason B. Freeman

Jason B. Freeman

Managing Member


Mr. Freeman is the founding member of Freeman Law, PLLC. He is a dual-credentialed attorney-CPA, author, law professor, and trial attorney.

Mr. Freeman has been named by Chambers & Partners as among the leading tax and litigation attorneys in the United States and to U.S. News and World Report’s Best Lawyers in America list. He is a former recipient of the American Bar Association’s “On the Rise – Top 40 Young Lawyers” in America award. Mr. Freeman was named the “Leading Tax Controversy Litigation Attorney of the Year” for the State of Texas for 2019 and 2020 by AI.

Mr. Freeman has been recognized multiple times by D Magazine, a D Magazine Partner service, as one of the Best Lawyers in Dallas, and as a Super Lawyer by Super Lawyers, a Thomson Reuters service. He has previously been recognized by Super Lawyers as a Top 100 Up-And-Coming Attorney in Texas.

Mr. Freeman currently serves as the chairman of the Texas Society of CPAs (TXCPA). He is a former chairman of the Dallas Society of CPAs (TXCPA-Dallas). Mr. Freeman also served multiple terms as the President of the North Texas chapter of the American Academy of Attorney-CPAs. He has been previously recognized as the Young CPA of the Year in the State of Texas (an award given to only one CPA in the state of Texas under 40).

One of the most devastating major winter storms in the history of the State of Texas has finally passed.  Recognizing the significant emotional and financial toll the storm has taken on Texans, the IRS recently released an announcement indicating that residents and businesses in all 254 Texas counties may qualify for tax relief.  See TX-2021-02 (Feb. 22, 2021).  This Insight summarizes some of the more noteworthy relief provisions.

Postponement of Certain Tax Deadlines

Both the Internal Revenue Code and the governing regulations provide authority for the IRS to provide relief to those affected by a federally declared disaster.  Exercising this authority, the IRS has declared that certain taxpayers “that reside or have a business in all 254 Texas counties qualify for tax relief.”  These taxpayers include:

If the taxpayer fits within one of the specific categories above, the taxpayer has until June 15, 2021, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and GST tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after February 11, 2021 and before June 15, 2021.

In addition, these affected taxpayers are given an extension of time to make estimated income tax payments originally due on or after February 11, 2021, and before June 15, 2021—these payments are now due through June 15, 2021.  Significantly, the IRS will not impose penalties for failure-to-pay estimated tax payments during this time, provided the payments are made on or before June 15, 2021.

Other Time-Sensitive Taxpayer Actions Extended 

The announcement also indicates that the IRS will give affected taxpayers until June 15, 2021, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) that are due to be performed on or after February 11, 2021 and before June 15, 2021.  These are similarly extended until June 15, 2021, and include:

Casualty Losses

Qualifying taxpayers above also have the option to claim disaster-related casualty losses on their federal income tax returns for either the year in which the event occurred, or the prior year (i.e. to accelerate the losses).  For those taxpayers claiming a disaster loss on a 2020 return, they should put the Disaster Designation, “Texas—Severe Winter Storms,” in bold letters at the top of the form.  In addition, the disaster declaration number, FEMA 4586, should be included on the return.

IRS Collection or Examination Matters

The IRS advises affected taxpayers who are contacted by the IRS in a collection or examination matter to explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.


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State and Local Tax Services 

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At Freeman Law, our experienced attorneys regularly guide our clients through complex state and local tax issues—issues that are frequently changing as states seek to keep pace with technology and the evolution of business. Staying ahead requires sophisticated legal counsel dedicated to understanding the complex state tax issues that confront businesses and individuals. Schedule a consultation or call (214) 984-3000 to discuss your local & state tax concerns and questions.