Another moving target! The IRS is postponing the deadline for all individual tax returns. Returns otherwise due April 15 will not have to be filed until May 17 this year. The IRS says it will issue formal guidance in the very near future.
The postponement applies only to individual taxpayers, who can postpone their federal income tax returns and income tax payment due on April 15 until May 17, 2021. 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.
Taxpayers do not have to file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to qualify for this postponement. No interest, penalty, or addition to tax for failure to file a federal income tax return or to pay federal income taxes will accrue between April 15, 2021, and May 17, 2021, for any return or payment postponed by the announcement, regardless of the amount owed. 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.
The IRS says taxpayers who request an extension using Form 4868 will, as usual, have until October 15th to file their returns, but their tax payments will be due May 17th.
The postponement does not apply to estimated income tax payments due April 15, 2021, for 2021 tax years. The postponement does not apply to any other type of federal tax or to any federal information returns.
The deadline postponement only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax.
Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline.
The American Rescue Plan Act also includes changes that retroactively affect 2020 returns, including making the first $10,200 in unemployment benefits tax-free for many taxpayers. The IRS promises more guidance and urges taxpayers to wait to file amended returns.
OFFICIAL STATEMENT HERE: https://home.treasury.gov/news/press-releases/jy0065
Reach Out To Us: Many taxpayers will not benefit from the extended deadline, as state income tax will need to be calculated and paid by April 15th. The failure to include estimated payments nullifies any benefit of a postponement, since the tax return work has to be done to calculate those as well. Got questions? Contact us at 855-542-7537 or CPA@fuoco.com.
