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There’s a New Tax Deadline. Here’s Why You Still File ASAP

COVID-19 in 2021 continues to create hardships for many. That is why the Treasury Department and IRS extended the deadline for the federal income tax filing and payments for the year 2020 to mid-May.

New Federal Tax Deadline

IR-2021-67 gives taxpayers a little peace of mind if they haven’t already filed or paid their taxes. The Treasury and IRS postponed the federal tax deadline to May 17, 2021. The extension is only for individuals who received 1040 [(1040, Form 1040-SR, Form 1040-NR, Form 1040-PR, Form 1040-SS, or Form 1040(SP) (Form 1040 series)] tax returns or who pay self-employment. The process is automatic. There is no need to fill out the extension request form 4868 unless you need additional time to file beyond May 17.

The extended deadline will not affect the taxpayer’s refund, as the IRS will continue to process refunds as usual.

Estimated income tax payments do not apply to the first or second quarter of 2021. Payments will remain due on April 15, 2021, and June 15, 2021. 

New State Tax Deadline

In California, the state tax return is also due May 17, 2021. Other states may vary and are not always the same as the federal filing deadline. If you are not filing in California, we urge you to check with your state tax agencies for those details. 

Don’t Wait Until May!

The IRS encourages all taxpayers who are due a refund to file now. Every individual has different circumstances; however, the sooner you file your taxes, the better. Here’s why:

• The sooner you file, the sooner you’ll receive your tax refund. If the taxpayer e-files, returns typically issue within 21 days. Last year, the average tax refund was close to $3,000. 
• Finding out how much you owe to the IRS now can help you plan accordingly to avoid penalties or interests. If you didn’t receive a stimulus payment or only received a partial payment, filing a tax return is the only way to receive your additional money. Some families may be entitled to an additional $1,800 per taxpayer. Finally, the IRS method is a first-come, first-served basis. Once someone files with your Social Security number, any other attempts to file the IRS will decline electronically. Worry less and get your refund. 

If you need additional time to file, you will need a tax professional or tax software to complete form 4868 and submit it. Once approved, you have until October 15, 2021, to file your taxes. However, you must still pay any taxes owed by May 17. Payments after May 17 will be subject to penalties and interest. 

Questions about your payroll taxes? Don’t hesitate to give us a call—we’re here to help!

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