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Federal Tax Deadline for Individuals Extended to May 17

March 17, 2021
The Treasury Department and Internal Revenue Service has announced 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. The IRS will providing more formal guidance. Estimated federal …
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Overview

The Treasury Department and Internal Revenue Service has announced 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. The IRS will providing more formal guidance. Estimated federal tax payments and state tax filings are not extended and are still due by April 15, 2021.

Federal Income Tax Payments

  • Individual taxpayers may also postpone federal income tax payments for the 2020 tax year due on April 15, 2021 to May 17, 2021, without penalties and interest, regardless of the amount owed.
  • This applies to individual taxpayers, including individuals who pay self-employment tax. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17, 2021.
  • Penalties, interest and tax additions will accrue on any remaining unpaid balances as of May 17.

Guidelines for Individual Tax Payers

  • There is no need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
  • Those who need additional time to file beyond May 17 can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until October 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.

Exceptions

The extension does not apply to estimated tax payments that are due on April 15, 2021. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. If you generally pay estimated taxes, your 2021 first quarter estimated tax payment is still due April 15, 2021.

State Tax Returns

The new federal tax filing deadline of May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax returns or payments.. Taxpayers will need to timely file and pay income tax returns in 42 states plus the District of Columbia according to each state’s applicable due date. State filing and payment deadlines vary and are not always the same as the federal filing deadline. Check with your state tax agencies for those details.

For more information, contact:
Meredith Mazzola
Tax Partner
mmazzola@gibney.com