Posted on 03/17/2021 6:45:07 PM PDT by granite
WASHINGTON — The Treasury Department and Internal Revenue Service announced today 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 be providing formal guidance in the coming days.
"This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities," said IRS Commissioner Chuck Rettig. "Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to."
Individual taxpayers can 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 postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline 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.
The IRS urges 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.
This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn't subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.
Good news. Very good news.
Stay of execution!
Ugh, 30+ more days of tax season.
Thank you for posting this. I owe tax so the extra time is great.
In order to do state taxes then you basically have to do federal taxes first anyways. Or at least you might as well do so. I don’t see any extensions mentioned for State taxes.
Most states won’t accept the state return until the feds accept the federal return. So the state would have to accept the new filing deadline, on a state by state basis. Unless the feds boiled that into the rule change and it didn’t get reported in the press release.
I see no such leeway was given to small business.
...
The tax law is a MESS this year. Only last week did Congress determine that unemployment for 2020 would be permitted a $10,200 exclusion.
The IRS and tax software companies haven’t adapted to the new law, and some returns already filed will have to be amended. The IRS has said don’t amend those returns yet, until they figure out a procedure to do so.
States are scrambling to adjust to these changes as well, including deciding how to treat PPP expenses. It’s a mess.
Deferring the filing deadline and not deferring the first estimated tax payment is a headache too, you need the prior year tax to figure the estimated tax payment, and its easy to link the dye date or extension date with that payment. This creates a new level of complexity to an already mess of a tax season.
I know, Turbotax is now two updates behind, the 10,200 deduction and the deadline. They probably need all the time to fix the software.
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