IRS Announces Tax Due Date Extended to May 17
Big news comes from the IRS as this year’s tax filing deadline has been extended from April 17 to May 17. The extension was first announced by Democratic Reps. Bill Pascrell of New Jersey and Richard Neal of Massachusetts and was confirmed by the IRS, March 17, 2021.
The extension was enforced to give taxpayers more time to navigate complicated tax situations due to the pandemic. The coronavirus has created extra tax related paperwork that is delaying processing on the government’s end as well.
Taxpayers can postpone payments due for the 2020 tax year until the May 17 date without any interest or penalties.
This includes individuals paying self-employment tax. Penalties will begin to accrue for any payments made beyond that date.
The extension will automatically be granted to all taxpayers and no form will be necessary for those taking advantage of the new tax date. However, those who wish to extend filing to October 15 will still need to use Form 4868 to qualify. The form may be accessed through a tax professional, through tax software and through the IRS Free File online system.
The extension does not apply to estimated tax payments. If you owe an estimated tax payment, it will still be due on April 15.
Although the extension is in place, taxpayers are still encouraged to file as soon as possible. This will help them get their refunds quickly and it may also speed up the distribution of stimulus payments. E-filing and direct deposit will also allow you to receive payments even sooner.
State tax returns
The government changed the tax cutoff time to May 17, 2021, this applies to individual federal income returns. This does not apply to state tax payments or deposits or payments of any other type of federal tax. Citizens likewise should document personal government forms in 42 states in addition to the District of Columbia. State recording and installment cutoff times fluctuate and are not generally equivalent to the government documenting cutoff time. The IRS urges citizens to check with their state tax agencies for those details.
Winter storm disaster relief for Louisiana, Oklahoma and Texas
Earlier this year, following the disaster declarations issued by the Federal Emergency Management Agency (FEMA), the IRS announced relief for victims of the February winter storms in Texas, Oklahoma and Louisiana. These states have until June 15, 2021, to file various individual and business tax returns and make tax payments. This extension to May 17 does not affect the June deadline.
For more information about this disaster relief, visit the disaster relief page on IRS.gov.
Sources:
https://www.cnn.com/2021/03/17/politics/irs-filing-deadline-may-15/index.html
https://www.cnbc.com/2021/03/17/irs-pushes-april-15-us-tax-deadline-to-may-17.html?__source=newsletter%7Ceveningbrief
https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline
