Taxpayers will have a little extra time to file taxes for the second year in a row. The Internal Revenue Service (IRS) has announced that the federal income tax filing due date for individuals for the 2020 tax year has been 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 and 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.
Individual taxpayers will not need to file any forms or contact the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15. Otherwise, taxpayers should pay any federal income tax due by May 17, 2021, to avoid interest and penalties.
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.
This relief does not apply to estimated tax payments that are due on April 15, 2021. Those 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. In general, estimated tax payments are made quarterly to the IRS by people whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony, or rental income.
Last year, the IRS moved the filing deadline to July 15, giving Americans an additional three months to file their taxes.
State tax returns
The federal tax filing deadline postponement applies to only individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021. It does not change filing dates for state tax payments or deposits or payments of any other type of federal tax. It is unknown at this time if Tennessee will extend the filing date for Hall tax returns or franchise and excise tax returns that are due April 15.
Our tax professionals at KraftCPAs recommend filing your returns as soon as possible despite the extended deadline. Reach out to a member of our tax team for help.