*The Internal Revenue Service said Wednesday that it is delaying the April 15 tax filing deadline to May 17 amid the chaotic filing season which has resulted in numerous pandemic-related tax changes.
The Treasury Department and the IRS said “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.” The extension will happen automatically, and individual taxpayers do not need to file any forms to qualify for the extension.
Per CBS News, the extra time applies to individual taxpayers, including those who pay self-employment taxes, such as sole proprietors and gig-economy workers, the IRS said.Â
“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,” the IRS said.
These changes don’t apply to state tax returns and payments that are still due on April 15, 2021, the IRS said.
While the IRS is trending, let me remind you that the agency has failed to collect more than $2.4 billion in unpaid taxes from millionaires.
They were only able to recoup about 39% of the $4 billion+ super-rich taxpayers owe in unpaid taxes.
Quite literally, tax the rich.
— Robert Reich (@RBReich) March 17, 2021
“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS Commissioner Chuck Rettig said in a news release. “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,” he said.
“I would advise folks to still file as soon as they can, especially if they are in need of their tax refund,” said Curtis Campbell, president of TaxAct. “The IRS is doing all they can to help deliver quickly for consumers and getting them their latest updated information may help tax filers get their return and potential other future economic payments faster.”
“This extension is absolutely necessary to give Americans some needed flexibility in a time of unprecedented crisis,” Reps. Richard Neal and Bill Pascrell said in a joint statement.
“Under titanic stress and strain, American taxpayers and tax preparers must have more time to file tax returns. And the IRS itself started the filing season late, continues to be behind schedule, and now must implement changes from the American Rescue Plan.
“We are gratified that the IRS has recognized the need and heeded our calls for additional time, and while we are pleased with this 30-day extension, we will continue to monitor developments during this hectic filing season,” they said.
Per Wall Street Journal… below are answers to questions taxpayers are asking.
Do I have an extra month to pay my taxes?
Yes. The new deadline of May 17 is for both payments and filing returns.
Who does the delay apply to?
The delay applies to individuals filing Forms 1040 and 1040-SR. It doesn’t affect deadlines for corporate, partnership or nonprofit tax returns.
What about first-quarter estimated tax payments?
The postponement doesn’t apply to first-quarter estimated tax payments for 2021. The deadline for them remains April 15. After that date, interest and penalties on unpaid amounts will apply.
Do I need to take any action for the delay to apply to me?
No. The extension is automatic for individual taxpayers. The agency says there is no need to call the IRS or file a form to qualify for this extension.
Does the May 17 deadline apply to contributions for 2020 traditional IRAs, Roth IRAs and HSAs?
This is still unclear, but it may not. The IRS will release guidance on this issue in coming days, and this Q&A will be updated when it does.
Can I still get an extension to file my 2020 tax return?
Yes. The deadline to file the 2020 tax return remains Oct. 15 for taxpayers who file Form 4868 to request an automatic extension. The deadline to submit this form is now May 17, not April 15.
Taxpayers who file it will have until Oct. 15 to finish their paperwork, but they must pay what they owe by May 17. On that day interest and penalties will start to apply.
I already filed my 2020 return and scheduled an automatic withdrawal of my tax payment for April 15. Will the IRS automatically delay this payment until May 17?
No, but taxpayers can take action to change the payment date.
Read more here.
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