IRS Pushes Individual Tax Deadline to May 17thMarch 18, 2021
The Internal Revenue Service has announced that Tax Day for individuals has been extended from April 15th to May 17th. Here’s what you need to know.
On Wednesday, March 17, 2021 the IRS announced that it will postpone the April 15th tax filing deadline for individuals to May 17th, due to continued challenges presented by the pandemic. Is this also an extension of the payment deadline? Find out below.
What is due May 17th?
The extended deadline applies to federal individual income tax returns. The announcement is related to federal filings only. States have not yet responded as to their intentions to follow the IRS delay. We are hopeful they will announce soon that they will adopt the IRS deadline. Stay tuned on that issue. In addition to filing, taxpayers can also delay payment of any balances owed on their 2020 federal tax return until May 17th, without penalties or interest (regardless of the amount owed). Taxpayers can request an extension to file their returns (not taxes owed) until October 15th if more time is needed after May 17th.
The extension applies to individual taxpayers, including individuals who pay self-employment tax.
On May 17th, penalties and interest will begin to accrue on any remaining unpaid balances.
In addition to state tax returns, the extension does not apply to C corps, estates, trusts, or gift tax returns that owe taxes. It also does not apply to the 2021 1st quarter estimated tax payments.
Victims of the February winter storms in Texas, Oklahoma and Louisiana have until June 15th to file and pay any taxes owed.
MA and RI have extended their deadlines to May 17th also, as of March 19th. Check out our blogs, MA Extends Individual Filing Deadline to May 17th and RI Extends Individual Filing Deadline to May 17th
Why the extension?
The extension allows needed flexibility to individuals, tax preparers and the IRS, still coping with challenges presented by the COVID-19 pandemic.
Is it still wise to file by April 15th?
Yes! Especially if you’re owed a refund, it’s best to consider filing as soon as possible. The quickest way to get refunds is to file electronically with direct deposit. This can also help some taxpayers receive remaining stimulus payments they’re owed.
Check out our blog, Biden Signs American Rescue Plan Act: What’s Inside? for details on the most recent changes to taxes for individuals and businesses.
Formal guidance is expected to be announced in the coming days, according to the IRS. We’ll keep you posted on any updates. Reach out to us with any questions.