| Some of you have seen a recent announcement about delays in the IRS deadline to May 17, 2021. On February 24, 2021, I reported on a delay for tax filings for all Texas residents. You may be asking which applies to you.
This email is to give you some clarity you won’t get on television, radio, in news apps or newspapers.
In IR-2021-43 issued in February, the IRS said residents of TEXAS have until June 15, 2021 to file returns and make payments for individuals and households. Certain deadlines falling on or after February 11, 2021, and before June 15, 2021 are postponed through June 15, 2021. This includes 2020 business returns, normally due on March 15 and individual and business returns normally due on April 15. It also includes the special March 1 filing and payment deadline for farmers and fishermen who forgo making estimated tax payments. Texas taxpayers also have until June 15 to make 2020 IRA contributions. The June 15, 2021 deadline applies to the first quarter estimated tax payment due on April 15. It also applies to the quarterly payroll and excise tax returns normally due on April 30, 2021. In addition, it applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17, 2021. In addition, penalties on deposits due on or after February 11, 2021 and before February 26, 2021, will be abated as long as the tax deposits were made by February 26, 2021. You shouldn’t get any sort of late notices if you file and pay within these dates. If you have a problem, call the IRS at 866-562-5227 to request this tax relief.
IR-2021-59 issued March 17, 2021 applies to taxpayers outside of Texas. 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 IRS said it will be providing formal guidance 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. 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 do not need to file any forms or call 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 by filing Form 4868 through their tax professional, tax software or using the Free File link on 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. 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. THIS EXTENSION TO MAY 17 DOES NOT AFFECT THE JUNE 15 DEADLINE FOR TEXAS TAXPAYERS discussed above.
NOTE that the May 17 deadline is ONLY for individuals, and not for corporations, partnerships, trusts, estates, etc. Further, there is no extension for the quarterly payment due April 15 or for any other payments or deposits.
However, note also that formal guidance is promised “in the coming days.” Stay tuned! |
