Tax Filing Deadline Extended to May 17, 2021: What You Need to Know
The Internal Revenue Service (IRS) is planning to extend the April 15 tax filing deadline to May 17, 2021, to give taxpayers an additional month to file their returns and pay any outstanding levies. This extension is particularly welcomed in times of unprecedented crisis.
IRS Announcement and Legislative Backing
The announcement was made by two senior members of the House, Richard Neal, the Chair of the House Ways and Means Committee, and Bill Pascrell, the head of the committee's oversight subcommittee. In a joint statement released on Wednesday, they expressed that this extension is "absolutely necessary to give Americans some needed flexibility."
However, it's important to note that the extension has not been finalized by the White House, as confirmed by Jen Psaki, the White House press secretary. As such, taxpayers are encouraged to stay informed and monitor further updates from the IRS and the administration.
Impact on Estimated Quarterly Payments
For those who owe estimated quarterly payments, the IRS has confirmed that these payments are still due on April 15, 2021, both for federal and state tax obligations. This condition applies regardless of the extension in the filing deadline.
Implications for Individual Income Tax Returns (Form 1040)
The extension applies primarily to the Individual Income Tax Return (Form 1040). This means that for personal tax returns, the April 15 deadline is now extended to May 17, 2021. Taxpayers must still ensure timely payment of any balances owed, but this provides much-needed breathing room for them to complete their filings.
Additional Considerations for Taxpayers
With the extended deadline, taxpayers are encouraged to take several steps to ensure compliance and minimize stress during this period:
Extending Due Dates for Extensions: If you have an extension, the additional time will apply to that as well. The filing deadline for extensions is automatically extended to May 17. Automatic Extension: If you don't request an extension but still need more time, the IRS offers an automatic extension to file until October 15 as long as you pay at least 90% of what you owe. Paying Taxes Owed: While the deadline to file has been extended, any taxes owed must still be paid by the original deadline to avoid penalties and interest charges.Conclusion
The extension of the tax filing deadline to May 17, 2021, is a welcome relief for many taxpayers facing unprecedented challenges. However, it's crucial to stay updated with the latest guidelines and avoid missing out on the benefits of the extension. For those who are still owed money by the IRS, it's advisable to take proactive steps to resolve those issues as soon as possible.
To summarize, the key points to remember are:
The April 15 tax filing deadline has been extended to May 17, 2021. Estimated quarterly payments are due on April 15, 2021, both for federal and state. The extension is applicable to personal tax returns (Form 1040).Taxpayers are encouraged to take advantage of the extra time provided and seek professional advice if needed. By staying informed and organized, you can ensure a smooth tax filing experience.