Texas Storm Tax Relief (TX-2026-05): Houston, Austin, San Antonio and 62 Counties in All Get Until February 1, 2027

One-sentence takeaway

On October 27, 2026, the IRS issued TX-2026-05: individuals who live in, and businesses whose principal place of business is in, 62 Texas counties hit by the severe storms that began July 14, 2026 (including Harris, Fort Bend, Travis, Williamson and Bexar) now have until Monday, February 1, 2027 for most federal filing and payment deadlines falling from July 14, 2026 through January 31, 2027. That covers extended 2025 individual returns originally due October 15, 2026, estimated tax payments due September 15, 2026 and January 15, 2027, and quarterly Form 941 returns due July 31, 2026 and November 2, 2026. It does not cover 2025 tax that was due April 15, 2026, and payroll tax deposits stay on schedule. The IRS applies the relief automatically based on the address of record, but now is a good time to confirm your county and your deadlines.

News background

On July 14, 2026, the Governor of Texas issued a state disaster declaration covering 62 counties. Texas requested a federal Major Disaster Declaration on July 17, 2026, and FEMA DR-4935-TX was approved on September 1, 2026, but only for 23 of those counties. On October 15, 2026, the Governor wrote to the Treasury Secretary asking for federal tax relief under Internal Revenue Code §7508A: §7508A(a) for the 23 FEMA counties and §7508A(c) for the other 39 counties that have only a state declaration (including Harris, Fort Bend, Travis, Williamson, Bexar, Galveston, Brazoria and Hays).

Section 7508A(c) was added by the Filing Relief for Natural Disasters Act (Public Law 119-29, signed July 24, 2025). It allows the disaster postponement rules to apply to a qualified state-declared disaster when the governor requests it in writing. The IRS release says the relief follows the disaster declaration issued by the State of Texas, under declaration number SD-0018-DR.

Separately, the Disaster Related Extension of Deadlines Act (Public Law 119-64, signed December 26, 2025) treats a §7508A postponement period as an extension of time to file when applying the refund lookback rule of §6511(b)(2)(A), for refund claims filed after December 26, 2025. Sources: IRS TX-2026-05, the Texas Governor's October 15, 2026 letter to Treasury, and the text of Public Laws 119-29 and 119-64.

Old vs. new

Which disasters qualify: Before — §7508A postponements generally required a federally declared disaster (or a significant fire, terroristic or military action). Now — a state-declared disaster can qualify at the governor's written request; 39 of the 62 counties in this relief have only a state declaration.

Extended 2025 individual return (Form 1040): Before — October 15, 2026. Now — February 1, 2027. The 2025 tax payment due April 15, 2026 is not eligible.

Estimated tax: Before — September 15, 2026 (third installment) and January 15, 2027 (fourth installment). Now — no estimated tax penalty for those installments if paid by February 1, 2027.

Quarterly payroll returns (Form 941): Before — Q2 due July 31, 2026 and Q3 due November 2, 2026. Now — February 1, 2027.

Business, trust and gift tax returns: Any original or extended due date from July 14, 2026 through January 31, 2027 (for example, extended Forms 1120-S and 1065 due September 15, 2026, and extended Forms 1120 and 709 due October 15, 2026) moves to February 1, 2027.

Payroll and excise tax deposits: Generally not postponed. Penalties are abated only for deposits due July 14 to July 28, 2026 that were made by July 29, 2026.

Information returns: Forms W-2, 1094, 1095, 1097, 1098 and 1099 series, plus Forms 1042-S, 3921, 3922 and 8027, are not postponed unless an act is specifically listed in Rev. Proc. 2018-58.

Installment agreements: Missed payments during the postponement period will not default the agreement, but the usual interest and late-payment penalty keep accruing.

Copies of returns: Write SD-0018-DR in bold at the top of Form 4506 or Form 4506-T and the IRS waives the usual fee.

Refund window: Under Public Law 119-64, the postponement period counts toward the refund lookback period, which gives affected taxpayers more room on refund claims.

Self-check

If you live in Harris or Fort Bend County (Houston, Sugar Land) and extended your 2025 return but missed October 15, 2026: your filing deadline is now February 1, 2027. Any unpaid 2025 tax still accrues interest from April 15, 2026, so consider paying it now.

If you run an S corporation or have employees in Travis, Williamson or Bexar County: your Q3 Form 941 can be filed by February 1, 2027, but monthly or semiweekly payroll deposits stay on schedule, and Forms W-2 and 1099-NEC are still due February 1, 2027.

If you live outside the disaster area but the records you need are in it (for example, your books are kept at a Houston office), or you recently moved and your IRS address is not in the area: the IRS may not identify you automatically. Call IRS Special Services at 866-562-5227.

If you have an IRS installment agreement: missed payments will not default it during the postponement, but interest and penalties keep running. Reminder notices and direct debits continue; to suspend a direct debit, contact the IRS or your bank.

If your household received government disaster aid or needs retirement funds: qualified disaster relief payments are generally excluded from income (see Publication 525), and retirement plan hardship or disaster distributions depend on plan terms (see Form 8915-F).

Simplified example

This is a simplified illustration of how the postponed deadlines work. It is not an IRS determination for any specific case.

Mr. Wang lives in Sugar Land (Fort Bend County) and owns an S corporation in Houston (Harris County) with three employees. As of October 28, 2026:

1. 2025 Form 1120-S: Extended to September 15, 2026, not yet filed. The deadline is now February 1, 2027, so filing by then avoids a late-filing penalty.

2. 2025 personal Form 1040: Extended to October 15, 2026, not yet filed, with an expected balance due of $4,000. The filing deadline is now February 1, 2027, but the $4,000 was due April 15, 2026 and is not eligible for relief. Interest and the late-payment penalty run from April 15, 2026, so paying now limits the cost.

3. Q3 2026 Form 941: Originally due November 2, 2026, now due February 1, 2027. As a monthly depositor, however, the company must still deposit payroll taxes on October wages by Monday, November 16, 2026.

4. Fourth-quarter 2026 estimated tax of $6,000: Originally due January 15, 2027. Paid by February 1, 2027, it carries no estimated tax penalty for that installment.

Bottom line: the relief buys Mr. Wang time to get his paperwork in order, but interest on old balances and payroll deposits do not pause.

Action steps and timeline

Now (from October 28, 2026): Confirm that your home or principal place of business is in one of the 62 counties. Check your IRS address of record, and file Form 8822 (individuals) or Form 8822-B (businesses) if it has changed.

If you get a penalty notice: If the original filing, payment or deposit date falls in the postponement period, call the number on the notice and ask the IRS to abate the penalty.

Around November 2, 2026: Your Q3 Form 941 can wait, but if your records are ready, file on time. Keep making payroll deposits.

January 15, 2027: The fourth estimated tax installment can wait until February 1, 2027; if cash flow allows, pay on the original schedule.

Monday, February 1, 2027: The last day for all postponed filings and payments. Forms W-2 and 1099 series are due the same day and are not postponed.

Storm losses: The IRS release does not address personal casualty loss deductions. Whether and when a loss can be claimed on Form 4684 depends on whether your county is one of the 23 in FEMA DR-4935-TX or only state-declared, and on current law. Keep photos, repair invoices and insurance records and review it case by case.

FBAR: FinCEN may separately extend FBAR deadlines for affected taxpayers; watch for relief notices.

How YCL can help

Deadline map: Based on your home address, principal place of business and each return (1040, 1120-S, 1065, 1120, 709, 941, estimated tax), we list original and postponed due dates and flag deposits and information returns that are not postponed.

Catch-up filing: We complete extended but unfiled 2025 individual and business returns before February 1, 2027, compute interest on balances due and plan early payment.

Penalty notices: We check whether an IRS penalty falls within the postponement period and request abatement; if it does not, we evaluate reasonable cause or First-Time Abatement.

Clients outside the area or who moved: We help determine whether you qualify because your records are in the disaster area, contact IRS Special Services, and update Form 8822 / 8822-B.

Disaster-year planning: We help sort out the tax treatment of disaster aid, insurance recoveries, repair costs and retirement plan disaster distributions (Form 8915-F). Related article: https://yclcpa.com/en/insights/disaster-tax-deadline-relief

YCL Accounting & Consulting is a multistate CPA firm serving clients nationwide in English and Chinese, and Texas clients can work with us remotely.

FAQ

Q: I live in Houston (Harris County). Do I need to apply for the postponement?

A: Usually not. The IRS automatically identifies taxpayers in the covered area by address of record. If your IRS address is outside the area, or you live outside but your records are inside, call 866-562-5227.

Q: I didn't pay my 2025 tax in April. Can I wait until February 1, 2027?

A: No. The IRS says 2025 tax payments originally due April 15, 2026 are not eligible. Only the filing deadline for returns extended to October 15, 2026 moves to February 1, 2027.

Q: Are my company's payroll tax deposits postponed too?

A: No. Payroll and excise tax deposits are generally not postponed; only deposits due July 14 to July 28, 2026 and made by July 29, 2026 get penalty relief. The quarterly Form 941 return itself is postponed.

Q: Does the relief cover only the 23 FEMA counties?

A: No. The IRS relief follows the Texas state disaster declaration (SD-0018-DR) and covers all 62 counties, including Harris, Fort Bend, Travis, Williamson and Bexar, which are not in FEMA DR-4935-TX.

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Disclaimer

This article is general tax information, not tax, legal or investment advice for any person or business, and it does not promise any tax outcome or IRS position. It is based on IRS TX-2026-05 (October 27, 2026), the Texas Governor's October 15, 2026 request letter to Treasury, and the text of Public Law 119-29 (July 24, 2025) and Public Law 119-64 (December 26, 2025). Relief applies only to the counties and acts listed by the IRS, and the IRS may provide additional relief. Check the latest IRS guidance and consult a licensed professional.