Hurricane Harvey Tax Update
On Wednesday, August 23, 2017, the lives of Texans all along the Texas Gulf Coast were forever changed by Hurricane Harvey. We know that many of you, including family and friends, have been personally impacted by Harvey and we are praying for strength, comfort, and hope for all.
As of August 31st, Governor Abbott has declared a State of Disaster for 50 Texas counties and President Trump has signed a Federal Disaster Proclamation, authorizing assistance by the Federal Emergency Management Agency, to 29 Texas counties. One benefit of the President’s Proclamation, permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area.
As such, the IRS has granted tax relief to affected individuals who reside or have a business in Colorado, Fayette, Hardin, Jasper, Jefferson, Montgomery, Newton, Orange, Sabine, San Jacinto, Waller, Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria, and Wharton counties of Texas.
The tax relief automatically extends the filing deadline, for certain individual and business taxpayers who have a valid extension on file, until January 31, 2018. The tax relief also applies to quarterly estimated income tax payments originally due on September 15, 2017 and January 16, 2018 and quarterly payroll and excise tax returns normally due on October 31, 2017. In addition, penalties on payroll and excise tax deposits due on or after August 23, 2017, and before September 7, 2017, will be abated as long as the deposits were made by September 7, 2017.
An affected taxpayer can be an individual, a business entity, sole proprietor, or a shareholder in an S-Corporation who is eligible for the postponement of time to file returns, pay taxes, and have penalties waived due to a federal declared disaster. Taxpayers are affected by the Harvey disaster, if records necessary to meet a filing or payment deadline between the postponement period of August 23, 2017 and January 31, 2018, are located in a covered disaster area.
At the state level, for some taxpayers in the counties declared disaster areas, may be unable to file state taxes, timely. The Comptroller can grant an extension of up to 90 days to file tax returns to a business affected by the declared disaster. An affected business must request the extension and each extension request is handled on a case-by-case basis.
We will distribute additional communications regarding the tax impact of a natural disaster to individuals and businesses. Topics will include Disaster Losses, Determining the Amount of the Loss, Casualty Losses and others.
We know that taxes are the last thing on your mind, and we are here to do what we can to ease that burden for you. Please do not hesitate to contact us, any time, if you have questions regarding the impact to your personal and/or business taxes or if there is anything we can do to assist you.
Let our tax professionals help provide you relief.
The material contained in this article is current as of the date produced. The information in this article is for discussion purposes only and should not be relied upon without seeking tax advice specific to your personal facts and circumstances. Any tax advice in this communication is not intended or written by Lane Gorman Trubitt, LLC to be used, and cannot be used, by a client or any other person or entity for the purposes of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.