Disaster tax relief granted for employers located here, says IRS
Businesses impacted by the massive storms that hit Texas recently will receive some temporary disaster tax relief.
IRS just announced that businesses will now have until June 15, 2021 to file returns and pay any taxes that were originally due from February 11 on.
What falls under the tax relief:
- various 2020 business returns due on March 15
- business returns normally due on April 15
- quarterly estimated income tax payments due on April 1, and
- quarterly payroll and excise tax returns normally due on April 30.
And unlike many other disasters, where relief applies to specific counties or regions, this relief applies to the entire state of Texas.
Quarter 2 interest rates out too
In addition to disaster tax relief, companies in the other 49 states will want to know how much they’ll pay or receive should their federal tax payments be not exactly to-the-penny correct.
IRS has announced it’ll hold interest rates steady for federal tax payments in the second quarter. So from April 1 – June 30, your rates remain:
- 2% for overpayments
- 0.5% for the portion of a corporate overpayment exceeding $10,000
- 3% for underpayments, and
- 5% for large corporate underpayments.
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