Federal Tax Deadline for Individuals Is Extended to May 17, 2021

The Treasury Department and Internal Revenue Service have 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.

Helping taxpayers deal with unusual circumstances

According to an IRS spokesperson, the agency issued the extension to help taxpayers deal with the unusual circumstances related to the COVID-19 pandemic. Taxpayers are urged to consider filing their returns as soon as possible even with the new deadline, particularly those who are owed refunds. 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.

Includes those who pay self-employment tax

The new deadline of May 17, 2021, 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 do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

Need additional time to file?

Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using a “Free File” link on the IRS website (IRS.gov). Filing Form 4868 gives taxpayers until October 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

Does not apply to estimated tax payments due on April 15

This relief does not apply to estimated tax payments that are due on April 15, 2021. These 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. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.

Please contact us

If you have any questions or concerns with regard to this deadline extension, or for any other concern, please feel free to contact us at (972) 885-0156. Frisco Bookkeeping and Tax Services offers a variety of services for individuals and small-to-large companies. Our firm, which boasts more than 18 years of successful, timely, and reliable assistance, offers setup and training of QuickBooks®, QuickBooks® Pro Advisor, Online QuickBooks®, and Online Cloud. We also provide bookkeeping and payroll services, as well as income tax preparation for individuals and businesses.