Heavy rains pounded the Houston area earlier today, with rainfall falling at rates as high as four inches an hour at times. Rainfall totals reached as much as 20 inches as of 6:30 a.m. CDT, with storm conditions leaving more than 100,000 customers without power in the Houston metro area.
As a result of the severe weather in Houston and the surrounding area, the Internal Revenue Service (IRS) has advised affected taxpayers that they may qualify for relief from penalties if they are unable to meet today’s deadline for filing 2015 tax returns.
While there is normally no penalty for filing a late return when taxpayers are owed a refund, taxpayers who owe tax are subject to penalty and interest. The IRS advises Houston area taxpayers who owe tax and are not able to file on time to file when they are reasonably able. The IRS also reminds taxpayers they can also qualify for an automatic six-month extension to file their tax returns (here’s how).
If taxpayers who are affected by the severe weather receive a notice regarding a penalty, those taxpayers can request a penalty abatement based on reasonable cause criteria. Affected taxpayers may request an abatement by contacting the IRS using the telephone number listed on the notice and identifying themselves as a taxpayer affected by the severe storms during the period around April 18, 2016. The IRS will review requests on a case-by-case basis.
Keep in mind that if a disaster declaration is issued by Federal Emergency Management Agency (FEMA), the IRS can offer additional relief for taxpayers. The IRS will continue to closely monitor the situation.
