The IRS has announced they are extending the filing due date for 2020 individual tax returns from April 15, 2021 to May 17, 2021. This was meant to be a one-month extension, but since May 15 fell on Saturday it was extended to the next business day which is May 17, 2021.
This extension only applies to individual 1040 and the 1040-SR tax returns. It extends not only the filing deadline but also the payment of any tax due including self-employment tax. Thus penalties, interest and additions to tax for the individual returns will not begin to accrue on any remaining unpaid balances until after May 17, 2021.
The extension to May 17 is automatic. For additional time beyond May 17, a traditional extension can be filed any time before May 17 extending the due until October 15, 2021. As a reminder, the additional extension only extends the time to file, not the time pay any tax due. The extension requires an estimate of any remaining tax due to be paid with the extension.
Caution: The IRS did not extend the due of the first installment of the 2021 estimated tax payment which continues to be April 15, 2021.
Although it is not known at this time if all states with income taxes will also extend their deadlines, but it is anticipated they will.
Even though the IRS has extended the deadline, clients are encouraged to file as early as possible since many will be receiving refunds and others will need to file 2021 estimated tax payments by the original April 15, 2021 deadline.
Please give this office a call if you have any additional questions.