The IRS announced on Wednesday that it is extending the federal income tax filing and payment deadline to Monday, May 17, 2021. During this time, the IRS will also waive penalties and interest.
This extension only applies to individual taxpayers, who will now be able postpone filing their federal income tax returns and making any income tax payment due until May 17 without needing to file for an extension.
The May 17 extension does not apply to estimated tax payments due April 15, 2021. These payments will still be due April 15. In addition, the postponement does not apply to any other type of federal tax or to any federal information returns.
In its statement, the IRS acknowledges the hardships taxpayers continue to experience due to the pandemic, but still urges taxpayers to file as soon as possible. We echo this advice. Our Tax Strategies team continues to work diligently with our clients to file their tax returns, and we are advising them that it is still a good idea to do as much as possible before April 15.
Also, please note that the May 17 extension currently only applies to federal income taxes. We are continuing to monitor the various states' guidance with regard to any changes adopted for due dates for tax filings and related tax payments.
In its statement, the IRS noted that it plans to issue more formal guidance shortly. We will provide further information as it becomes available. As always, if you have any questions about these or any other matters, please contact your Kreischer Miller relationship professional or any member of our Tax Strategies team. For additional news and resources, visit our COVID-19 Resource Center.
Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.