It’s official. Late on Wednesday, March 17, 2021 the Treasury and IRS confirmed that the federal individual tax deadline will be automatically postponed to May 17, 2021.
The filing deadline extension applies only to income tax returns for individuals and 2020 tax payments (including tax on self-employment income) otherwise due April 15, 2021. The extension is automatic and you do not need to take action.
The IRS will automatically waive penalties and interest, regardless of the amount owed. However, penalties will resume and interest will accrue on any remaining unpaid tax balances as of May 17.
If you have not yet filed your 2020 return, the IRS still encourages taxpayers to file as soon as possible, especially if expecting a refund.
As of today, the extension is valid only for federal returns. It is up to each state to determine their filing and payment deadlines. While New Jersey has proposed extending the state tax deadline to match the federal, it is not yet final. Check with your respective state tax agency for updates to their filing and payment due dates at https://www.taxadmin.org/state-tax-agencies.
[Update] As of March 19, both Pennsylvania and New Jersey have followed suit and extended their individual tax filing deadlines to May 17.
The IRS will release more guidance in the coming days. If you have not yet filed your 2020 return, touch base with your Alloy Silverstein CPA to schedule a virtual meeting.
Contact an Alloy Silverstein accountant and advisor for further tax or business assistance.
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