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TAX ALERT: Another Change to the World as We Know It

By Denise Felber, CPA, Tax Partner

Update to Filing Deadlines:

With Winter Storm Uri in February 2021, Texas, Louisiana, and Oklahoma were declared disaster areas.

  • For businesses and residents of those states,
  • Due dates of any Federal forms, elections, and payments due from February 7 to June 14
  • Were moved to June 15, with
  • Extended due dates remaining the same, and
  • Oklahoma and Texas tax commissions agreeing to follow the change. Louisiana did not.

With the passage of the $1.9 trillion dollar relief bill in March 2021 and the lingering effects of Covid-19,

  • For individual residents of the states besides Texas, Louisiana, and Oklahoma,
  • Due dates for 2020 Federal forms and payments normally due April 15, 2021
  • Have been moved to May 17, 2021, with
  • Extended due dates remain the same,
  • However, first-quarter estimates for 2021 are still due April 15, and
  • States are not required to follow the Federal changes.

Cautions, Warnings, and Confusion

IRS:

The software compares due dates and the actual filing date of a filing,

Notices with applicable penalties are generated for late filings, but

The filing dates for Texas, Louisiana and Oklahoma taxpayers have not been reset,

Resulting in tax assessments on late filing notices.

Under IRS Rev. Proc. 2018-58 and OK-2021-01, due dates of all filings from February 8 to June 15, 2021 have been extended to June 15, 2021.   The correspondence flood and log jam has started again.  Do not pay the assessment.  A letter must be sent to acknowledge the notice and provide reasons for waiver.

Our world is not back to “Normal” yet but please know we are continuing to watch and post information as it is available.  Contact us if you have questions.