The IRS and Treasury Department announced that the deadline for filing individual 2020 returns has been extended from April 15, 2021 to May 17, 2021 to give taxpayers more time to apply the tax relief and changes contained in recent stimulus legislation.
As we await further guidance from the IRS in the coming days, please keep the following in mind:
- This extension applies only to individual taxpayers, including those who pay self-employment tax.
- This is an automatic extension and does not require notifying the IRS or filing any forms.
- No penalties or interest will accrue on 2020 tax obligations prior to the May 17, 2021 deadline.
- Penalties, interest and additions will begin to accrue on any remaining 2020 tax obligations not paid by May 17, 2021.
- Taxpayers who put their returns on extension will have until October 15, 2021 to file, regardless of this change to the original deadline. However, payment of 2020 taxes is still due on May 17, 2021.
- Estimated 2021 Q1 tax payments are still due on April 15, 2021.
- This change of federal deadline does not extend your state income tax deadline.
Grassi will keep you informed of any updates as the IRS issues more guidance or changes to this information. We encourage taxpayers, especially those who are due a refund, to continue to plan to file their 2020 tax returns as soon as possible.
If you have any questions about how this change or the recent stimulus packages affect your individual tax returns, please reach out to your Grassi Tax advisor.
