The Treasury Department and Internal Revenue Service announced on March 17, 2021, that 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. More formal guidance will be forthcoming in the coming days.
Along with extending the filing deadline change, individual taxpayers can also delay paying their federal income taxes due from their 2020 federal income tax return to May 17, 2021, without penalties and interest. Penalties, interest, and additions to tax will begin to accrue as of May 17, 2021.
There is no need to file any forms as this is automatic federal tax filing and payment relief. Those who need additional time to file beyond the May 17 deadline can request a filing extension by filing Form 4868 which extends the filing deadline to October 15, but does not grant an extension of time to pay taxes due. As noted, taxpayers should pay federal income tax due by May 17, 2021, to avoid interest and penalties.
This relief currently does not apply to estimated tax payments due on April 15, 2021. These payments will still be due on April 15. In general, estimated tax payments are made quarterly to the IRS by people whose income is not subject to income tax withholding, including self-employment income, interest, dividends, rental income, and income from pass-through businesses.
The federal tax filing deadline postponement only applies to individual federal income returns and tax payments otherwise due April 15, 2021. State tax deadlines for filing, payments or deposits are not affected by this IRS rule.
The IRS is urging taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.
If you have additional questions about your tax planning and filling requirements, BerganKDV is here to help. Contact us and one of our tax experts would be happy to assist.