The filing deadline is now June 15, 2021, and other tax relief is available for victims of the storms.
2/23/2021 9:00
The Internal Revenue Service is extending tax relief options for taxpayers in Texas following the winter storms in February.
Consumers and businesses impacted by the storms will have until June 15, 2021, to file various individual and business tax returns and make tax payments, according to a news release from the IRS.
“Following the recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS is providing this relief to the entire state of Texas. But taxpayers in other states impacted by these winter storms that receive similar FEMA disaster declarations will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov,” according to the news release.
The new filing and payment deadline applies to 2020 individual and business returns that would be due on April 15, as well as various 2020 business returns due on March 15.
It applies to quarterly estimated income tax payments and payments from tax-exempt organizations. View all the details on the tax relief from the IRS here.
The IRS disaster relief page has information on other returns, payments and tax-related actions qualifying for the deadline extension.
“The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief,” according to the news release. “However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.”
Tips for Working with Consumers During Tax Season
Tax sason started later this year—Feb. 12—but the April 15, 2021, filing and payment deadline remains in place for general taxpayers.
ACA International members can take this time to inform consumers, staff and clients of the change, especially for those impacted by the storms in Texas, ACA previously reported. Tax season is also an opportunity to work with consumers on managing their accounts and using money available from their tax refund to help pay past-due bills.
This year, debt collectors should consider extra hardships consumers may be facing due to the COVID-19 pandemic and the recent storms, but a friendly reminder that their tax refund, if available, can be used to pay down debts.
Many debt collection agencies encourage their collectors to bring up tax refunds during conversations with consumers. Try asking, “Are you expecting a tax refund this year?” or “Have you thought about using your tax refund to pay this?”
Given the recent storms, it’s also a good time to review ACA’s tips for communicating with consumers during or after a natural disaster.
- Review your company’s disaster response and communications plan on a regular basis. If your company doesn’t have a plan, rally the team and create one.
- Debt collectors should work with their clients to determine how to service consumers faced with natural disasters and develop policies and procedures that prevent inconveniencing consumers during that difficult period.
- If you do reach a consumer affected by a natural disaster, proceed with compassion. Document their circumstances in the account notes and update contact information as accurately as possible with a temporary housing address and a working phone number.
ACA members can also access disaster recovery resources through Alliance ACA partner Agility Recovery.
Download Agility Recovery’s Do’s and Don’ts of Business Continuity Planning webinar to learn how to make sure your business continuity plan can handle any type of interruption or disaster.
The Federal Trade Commission has also issued winter weather emergency tips to help consumers and businesses prepare for and respond to weather emergencies, which may be a helpful tool when communicating with consumers.