The IRS announced on Wednesday that it is extending the federal income tax filing and payment deadline to Monday, May 17, 2021. During this time, the IRS will also waive penalties and interest.
This extension only applies to individual taxpayers, who will now be able to postpone filing their federal income tax returns and making any income tax payment due until May 17 without needing to file for an extension.
The May 17 extension does not apply to estimated tax payments due April 15, 2021. These payments will still be due on April 15. The postponement does not apply to any other type of federal tax or any federal information returns.
In its statement, the IRS acknowledges the hardships taxpayers continue to experience due to the pandemic but still urges taxpayers to file as soon as possible. We continue to work diligently with our clients to file their tax returns, and we are advising clients that it is still a good idea to do as much as possible before April 15.
Also, please note that the May 17 extension currently only applies to federal income taxes. We are continuing to monitor the various states' guidance concerning any changes adopted for due dates for tax filings and related tax payments.
In its statement, the IRS noted that it plans to issue more formal guidance shortly. We will provide further information as it becomes available.