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Extensions—and the Interplay Between the Pandemic Filing Relief and the Texas Winter Storm Relief

David Donnelly, CPA-Houston

Background:

  • The pandemic extension only provides for relief to May 17 for Form 1040. No other returns were provided relief.
  • The Texas (and Oklahoma) winter storm extension provided relief to June 15 for all returns. However, the IRS has not updated its systems to accept e-filed extensions for the Texas winter storm disaster.

Analysis:

  • For taxpayers who qualify for the Texas relief, returns other than Forms 1040 that were not extended by their normal due date (March 15 for S Corps and Form 1065, April 15 for Forms 1120 and 1041), may be extended by filing a paper extension by the June 15 date.
  • For Forms 1040 that qualify for the Texas relief, the return can be extended via e-file through May 17; after that, since the IRS has not updated its systems for the Texas winter storm relief, a paper extension can be filed through June 15. 

Comments:

  • Taxpayers who do not reside in Texas but qualify for the Texas relief (since their tax records are in Texas) must call the IRS phone number to notify the IRS that they qualify. Presumably, their tax professionals can also call this number; however, some IRS personnel will only provide the relief if there is a POA on file. The number, according to Form 2210, is 866-562-5227.
  • The IRS is processing anything they receive via mail extremely slowly. 
    • Practitioners should e-file as many Form 1040 extensions as possible by the end of the e-filing period on May 17.  
    • For returns that are extended on paper filing, be prepared to correspond with the IRS should penalties be assessed.

We have heard word, unofficially and not from an IRS source, that the IRS is working on this issue and may make an announcement this week. Of course, that information is way overdue for our tax professional community.

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