by Scott A. Meyer –
Special tax deadline for Texas counties hit by the severe winter storm
As a result of the designation of our geographic area for federal disaster relief because of the severe winter storm that hit most of Texas and surrounding states in mid-February (Federal Disaster Declaration 4586), June 15, 2021 is the deadline this year to file business and personal tax returns for Texas residents located in covered disaster areas – no scrambling necessary to file on April 15 this year!
PPE expenses qualify as medical equipment
Additionally, because of COVID-19, the Internal Revenue Service has issued notice that Personal Protective Equipment (PPE) expenses qualify as medical equipment that can be paid tax-free via Health Savings Accounts (HSAs) and other forms of medical expense plans.
FEMA monetary disaster relief for damages not covered by insurance
Because of the federal disaster designation, the Federal Emergency Management Agency (FEMA) has created a process for monetary disaster relief for damages incurred that are not covered by insurance (https://www.disasterassistance.gov/). For those of you who have businesses or residences damaged but are not receiving coverage from your insurance carrier, this may be a viable path to recover some of the financial expenses you have incurred. The application process is fairly simple to begin. Keep in mind that you must select the cause of damage as “snow/ice” amongst any others that may have occurred and you will likely need to provide other documentation such as an insurance denial letter or insurance settlement statement to proceed after the initial application.
Another option for individuals, available in lieu of FEMA assistance, is to deduct personal property losses that are not covered by insurance or other reimbursements. This can be done via IRS Form 4684 (Casualties and Thefts) (https://www.irs.gov/newsroom/irs-announces-tax-relief-for-texas-severe-winter-storm-victims).
To learn about more changes that may affect your business…
As always, contact your tax professional for specifics related to tax filings and impact to your particular tax situation and deadlines. Many other entity deadlines have also been modified. Contact Scott Meyer at 469-916-7700 x115 or email Scott for assistance with any of your business issues.
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About Scott A. Meyer
Scott Meyer focuses his practice on Corporate and Intellectual Property matters. His Corporate practice includes a broad spectrum of services including entity formation, business transactions, operational agreements and contracts, sales, acquisitions and mergers of businesses, corporate governance and employment matters.
His Intellectual Property practice includes trademark, licensing and various service agreements for corporations.Read more…