IRS Extends Federal Filing & Payment Deadline for Individuals to May 17th

IRS Extends Federal Filing & Payment Deadline for Individuals to May 17th

We recently wrote about President Biden’s American Rescue Plan Act of 2021 (ARPA) and how it will affect you. It encompassed recovery rebates, the children tax credit, earned income tax credit, unemployment relief, exclusion of forgiven student loans, small business grants, the employee retention credit, PPP funding, EIDL advances, and paid sick leave & family leave tax credits. As the new administration creates new legislation, the IRS struggles to keep up. Therefore, they have announced the extension of individual tax returns to May 17th. Official guidance will be released soon.

Despite the extension, the IRS encourages taxpayers to file their taxes as soon as possible, electronically, and to use direct deposit, especially if owed a refund.

Per the IRS website, “Individual taxpayers can also postpone federal income tax payments for the 2020 tax year originally 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. The postponement does not apply to estimated tax payments that are due on April 15, 2021.”

In addition, earlier this year, the IRS announced relief for victims of the February winter storms in Texas, Oklahoma, and Louisiana. “These states have until June 15, 2021, to file various individual and business tax returns and make tax payments. This extension to May 17 does not affect the June deadline.”

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