The IRS announced they are extending the tax return filing 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 and interest for individual returns will not begin to accrue on unpaid balances until after May 17, 2021.
Do I Need an Extension To Get The New Tax Return Filing Date?
The extension to May 17 is automatic. For additional time beyond May 17, a traditional extension can be filed any time before May 17. This extending the due date until October 15, 2021. As a reminder, the additional extension only extends the time to file, not the time to 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. This continues to be April 15, 2021.
Although it is currently unknown if all states with income taxes will also extend their deadlines, they probably will.
Recommendations for Individual Tax Return Filing
Although the IRS has extended the deadline, clients are encouraged to get their paperwork into us as early as possible. (Before May 1, if possible). We encourage clients who wish to file extensions to let us know ASAP. Remember, some folks will still 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.
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