Individual Income Tax Filing Deadline Extended

The Treasury Department and Internal Revenue Service announced that the federal tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15 to May 17, 2021. The IRS will be providing formal guidance in the coming days. The IRS announcement was in response to requests by many taxpayers and lawmakers for relief in dealing with the pandemic and related tax legislation. The extension applies to income taxes and self-employment taxes. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.Taxpayers do not need to file any forms to qualify for this automatic extension for filing and payment. Taxpayers who need additional time to file beyond the May 17 deadline can request an extension until October 15 by filing Form 4868 by the May 17 due date.The notice is limited in application as it only applies to individual tax returns. No mention was made regarding extending returns for corporations and trusts. Importantly, the relief does not apply to quarterly estimated tax payments due April 15, 2021. These will still be due on April 15.State Tax ReturnsThe IRS announcement only applies to federal tax returns. State filing and payment deadlines vary and are not always the same as the federal filing deadline. It is expected that individual states will soon be announcing whether the May 17 deadline will be adopted.

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If you have questions about how the extended due date or other tax-related issues, please contact your Elliott Davis tax advisor.The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.