You may have seen in the news that Tax Day for 2021 has been extended from April 15, 2021 to May 17, 2021. However, we wanted to clarify what this means for our clients. Below are some highlights from the recent IRS news release about the tax day extension:
- This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.
- The federal tax filing deadline postponement to May 17, 2021, 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 returns (such as returns for corporations, estates, trusts, and gift taxes).
- Individual taxpayers can 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.
- Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
PLEASE CONTINUE TO BRING IN YOUR INFORMATION AS NORMAL – IF YOU MAKE ESTIMATED PAYMENTS, WE STILL NEED TO COMPLETE SUBSTANTIALLY ALL OF YOUR WORK BY APRIL 15TH. AT THIS TIME, WE HAVE NO WORD FROM THE STATE OFFICIALS REGARDING AN EXTENSION OF TIME TO FILE AND PAY STATE INCOME TAXES.
You can read the entire IRS News Release here: