I.R.S. Delays Tax Filing, Payment Deadlines
Submitted by Kaizen Financial Advisors, LLC on March 26th, 2021
Less than one month ahead of the traditional date, the I.R.S. has delayed the deadline for filing and paying taxes. The new deadline is May 17, 2021.1,2,3
The delay follows continued disruption from the COVID-19 pandemic and a late start to the tax-filing season, which the I.R.S. delayed to start on February 12. It also follows the agency's decision to postpone the deadline to June 15 for the states of Louisiana, Oklahoma, and Texas, still recovering from disastrous winter storm activity. Other states may now extend their local filing and payment deadlines.1,3
This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.3
Individual taxpayers can postpone federal income tax payments for the 2020 tax year 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.3
The extension will also provide taxpayers additional time to contribute to an Individual Retirement Account (IRA), and thereby decrease their AGI to potentially receive more favorable tax benefits.4
While this extension isn't unexpected, it may be welcome to many still coping with what is becoming one of the most complicated tax seasons in decades.
It’s important to point out that our letter is for informational purposes only, so make sure to consult your accounting professionals before modifying your tax-filing strategy. Or, reach out to your Kaizen advisor with any questions. We are happy to help!
Citations
1. CNBC.com, March 17, 2021
2. Bloomberg.com, March 17, 2021
3. IRS.gov, March 17, 2021
4. Forbes.com, March 21, 2021
