IRS Extends Tax Deadline Until May 17
The Internal Revenue Service has extended the tax-filing deadline after heavy pressure from Congress and professional groups. The federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. Individual taxpayers can now postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest. The postponement applies to individual taxpayers, including people who pay self-employment tax.
Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868. Filing Form 4868 gives taxpayers until Oct. 15 to file their 2020 tax return, but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.
The relief does not apply to estimated tax payments that are due on April 15, or deposits or other payments of any other type of federal tax (e.g. trust income tax payments and return filings on Form 1041 and corporate income tax payments and return filings on various 1120 forms). It also does not apply to state tax payments due or state tax filings. State filings and payment deadlines vary and are not always the same as the federal tax deadline. However, states may announce plans to extend their deadlines.
Lawmakers have a hearing with the Commissioner to discuss how the IRS is managing this filing season and the justification for the duration of this extension. Once the IRS releases its formal guidance, we will provide an updated Tax Alert.
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About the Author: Lou Gangi
