The IRS announced Wednesday that the April 15th deadline for federal tax return filing and payments due for individuals, tax year 2020, will be automatically extended to May 17th, with formal guidance to practitioners to follow in the coming days.  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.

According to IRS Commissioner Chuck Rettig, “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

This automatic extension does NOT apply to 2021 Q1 estimated tax payments, which are still due on April 15, 2021.  Furthermore, the filing extension does not currently apply to C-Corporations (Form 1120) or tax returns for Estates and Trusts (Form 1041).

It is also important to note that the filing deadline postponement does not apply to state tax payments or deposits, which are governed by each individual state’s taxing agency. Check for the latest guidance of each state at this link.

If you need a tax attorney, you can find an experienced attorney to help guide you or your business through the pitfalls of a complicated code.  We make law (and the tax code) make sense.  Visit us at www.lasher.com