News & Updates

August 23, 2021
Certified Public Accountants and Consultants
Be Aware of Late Filing & Payment Penalty IRS Notices

Reminiscing back to February 11th of this year, the State of Texas witnessed a blistering winter storm like never before. The statewide disaster left millions of Texans without electricity, heat or running water for weeks; for some, even months. With many families forced to search for warmth in unforeseen ways, and undergo boil water notices to ensure safe drinking water, the last thing on a taxpayers’ mind was that of a tax deadline.

As the middle of tax season quickly approached, the Federal Emergency Management Agency (FEMA) along with the IRS, declared the State of Texas as a disaster area, granting the taxpayers of all 254 Texas counties the tax relief they needed. The declaration allowed the IRS to postpone the tax filing deadlines and tax payment deadlines for residents, businesses and tax-exempt organizations (operating on a calendar year basis) who resided within the disaster areas to June 15, 2021. The deadline also applied to taxpayers who still needed to pay estimated tax payments, make IRA contributions, and file quarterly payroll & excise tax returns. Penalties on tax deposits were also abated if made before February 26, 2021. Fortunately, many Texan taxpayers still filed their tax returns timely by the June 15th extended deadline despite the storm. According to the IRS, the affected taxpayers were not required to make a separate request for relief since the IRS identified the taxpayers located in the disaster areas and automatically granted the relief. However, the government (IRS) did not hold up their end of the bargain for many of the affected taxpayers who still, surprisingly, received late filing & payment notices in the mail.
What to do if you received an IRS notice
The best thing for taxpayers to do to resolve this issue quickly, is to call the phone number on the IRS notice they receive and request to speak to an IRS agent to have the penalty abated. Taxpayers may also respond to the IRS notices by stating in writing a request to have the penalties abated, although this process could take much longer. Unfortunately, most taxpayers know that dealing with the IRS is never a walk in the park. Due to poor service performance levels and a decrease in staff from the Covid-19 pandemic this past year, the IRS has struggled to keep up with taxpayer demands and requests via telephone calls and mail correspondence, leaving many taxpayers frustrated to get their IRS issues resolved.
We are here to help serve you!

If you or someone you know recently received an IRS notice for the late filing or payment penalty, do not panic – you are not alone. Instead, let us at Griffing & Company, P.C. help clean up their mistakes. Our team takes pride in helping you with all areas of your tax situation. Call our office today to speak with one of our dedicated staff members. We are always here to serve you!
One Sugar Creek Center Blvd., Suite 650
Sugar Land, TX 77478
(281) 491-8866 Fax (281) 491-8998