Tax Filing and Payment Deadline Extended to May 17
On Wednesday, March 17, 2021, the Treasury Department and IRS announced that the federal income tax filing deadline for individuals has now been automatically extended from April 15 to May 17, 2021 due to the continued disruption caused by the COVID-19 pandemic and recently passed American Rescue Plan. The new deadline gives individuals subject to the April 15 deadline more time to file and pay their taxes without incurring interest or penalties, and without the need to file an extension.
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.
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.
The move from the IRS and Treasury Department comes after calls to extend the tax season by lawmakers in Congress from both parties as well as accounting professional groups like the American Institute of CPAs, the National Association of Tax Professionals, and the National Conference of CPA Practitioners.
This delay is part of the government’s efforts to minimize economic disruption due to the COVID-19 pandemic. The American Rescue Plan, passed March 11, contains changes to several tax credits including employers who provide paid sick leave or family leave and employer-provided dependent care assistance. We will be happy to advise you and assist you in taking advantage of any applicable tax relief.
At Buchbinder, it is our priority to continue to provide the same level of service, integrity, and responsiveness to our clients. We all stand together in facing these challenging times. Please reach out to us, whether to ask a question or to seek support.
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