March 17, 2021- The Treasury Department and Internal Revenue Service announced today 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.
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. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
The April 15 deadlines remain for:
- The first quarter’s 2021 federal estimated tax payments and,
- The filing due date (before extensions) for C corporations (form 1120).
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.
Beware: Twenty-three states plus the District of Columbia have confirmed the extension of the filing deadline of May 17, 2021, with many more states expected to follow suit. As of March 19, Alabama, Arkansas, Colorado, Georgia, Illinois, Kansas, Kentucky, Maine, Massachusetts, Missouri, Montana, New Jersey, New York, New Mexico, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, and Wisconsin have extended their individual filing date to May 17, 2021. Maryland has extended its filing date to July 15, 2021. California, Oregon, Utah also previously announced plans to extend their due dates.
There are several additional states that say that they will conform to the May 17, 2021 due date but have not formally announced the extension yet.
Below is a summary of some of the state filing dates of interest that are in place as of March 19:
- May 17th – 2020 Virginia income tax returns are due, with the first quarter 2021 estimated tax payments due May 1, 2021.
- July 15 is now the extended 2020 Maryland due date as well as the due date for the first AND second quarter 2021 estimated tax payments.
- May 17, 2021 – the 2020 extended due date for D.C. income tax returns, with the first quarter 2021 estimated tax payments due on April 15, 2021.
- California will also extend the state tax filing and 2020 payment due deadline for individuals to May 17th, 2021. The extension does not apply to 2021 California estimated tax payments due on April 15, 2021.
If you fail to send payments by these deadlines you may be subjected to a penalties and interest. We are recommending all taxpayers file their 2020 tax returns on or before April 15, 2021.
Feel free to reach out to us +1-703-437-8877 firstname.lastname@example.org and based on the state reside we can inform you of how you may be impacted.