Ben Westbrook | Director of Tax Operations
3.18.21 | Client Alert
The IRS recently announced via a news release that the deadline for the federal income tax filing and payment due date for individuals for the 2020 tax year has been automatically extended from April 15, 2021 to May 17, 2021. Formal guidance from the IRS should follow in the coming days.
This postpones all 2020 federal individual income tax returns due on April 15, 2021. In addition, payments of balances due on April 15, 2021 are extended to May 17, 2021, without interest and penalties, regardless of the amount owed. Taxpayers do not need to file any forms or contact the IRS to qualify for this postponement relief. Taxpayers needing more time beyond May 17, 2021 are still able to file extensions until October 15, 2021. Returns for taxpayers in certain disaster areas of Texas, Louisiana and Oklahoma are not affected by this extension. Those affected returns were already extended to June 15, 2021 due to winter storms.
It is just as important to note what the IRS did not extend. This relief does not apply to a number of filings and payments due April 15, 2021, including the following:
- April 15, 2021 1st Quarter 2021 Estimated Tax Payments
- Form 1041, U.S. Income tax return for Estates and Trusts
- Form 1120, U.S. Corporation income tax returns
- Fiscal year income tax returns and other informational forms due April 15
In addition, this relief does not apply to state tax returns. Most states (including New York) have not yet responded to this extension by the IRS and are still due April 15, 2021. Nine states (Alabama, Maine, Nebraska, New Mexico, Oklahoma, Oregon, Pennsylvania, Utah and Vermont) base their individual income tax return due dates on the federal due date and are presumably extended to May 17, 2021.
Berdon will continue to monitor and keep you informed as we receive official guidance from the IRS and state taxing authorities. In the meantime, due to uncertainty regarding state and estimated tax payment deadlines, we encourage taxpayers to gather information and file returns as soon as possible to prevent notices and potential penalties.
If you have any questions, please contact your Berdon advisor.