Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline

On March 17, 2021, the Internal Revenue Service 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 be providing formal guidance in the coming days.

The 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.

The postponement does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.

In addition, earlier this year, the IRS announced relief for victims of the February winter storms in Texas, Oklahoma and Louisiana. These states have until June 15, 2021 to file various individual and business tax returns and make tax payments. This extension to May 17 does not affect the June deadline.

In addition, there are some changes to the tax laws in connection with the Covid-19 relief bill that was recently passed (the American Rescue Plan Act of 2021) that impacts some tax items for the 2020 tax year.  We're waiting for the IRS to address/incorporate these changes in their systems where these changes are applicable for certain clients.  Then our tax software provider can make those updates to our tax software as well.

The Federal tax filing deadline postponement to May 17, 2021 only applies to individual federal income tax returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021.  This doesn't apply to state tax payments or deposits or payments of any other type of federal tax.  During last year's Tax Season, when the IRS changed the filing deadline, states eventually got around to changing their deadlines as well.  We hope that will happen again this year to align state deadlines with federal deadlines. 

We'll keep you posted as there are further developments about these deadlines.  

Thank you.