On March 17, 2021, The Treasury Department and Internal Revenue Service (IRS) announced that the federal income tax filing and payment due date for individuals for the 2020 tax year will be extended from April 15, 2021, to May 17, 2021. We expect the IRS will be providing additional formal guidance in the coming days.
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. This postponement applies only 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. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17. The IRS will continue to urge taxpayers to consider filing as soon as possible, even with the new deadline.
The extended deadline does not apply to estimated tax payments that are due on April 15, 2021. These payments remain due on April 15. Additionally, this relief does not apply to fiduciary or corporate tax payments that are due on April 15, 2021. For corporate and fiduciary filers, payments as well as extension requests, remain due on the April 15th deadline.
It’s important to note that the federal tax filing deadline postponement to May 17, 2021, only applies to federal individual income tax return payment and filing (including tax on self-employment income). Deposits or payments of any other type of federal tax remain due on the original deadline. State deadlines may vary depending on the state, as not all states have (or will) adopt the extended deadline granted by the IRS.
Here at Frost, PLLC we are actively monitoring the situation and are available to help you navigate these turbulent times.
Please contact your Frost representative(s) with any questions.