Wednesday March 17, 2021: The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date for individual returns for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.
Federal Tax Returns
Individual taxpayers can also 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. 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.
If additional time past the May 17th deadline is needed for filing individual returns, a extension can be filed to extend until October 15th, 2021. Although Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties, it is still suggested that if you are getting a refund to file as soon as possible. Most refunds will be applied within 21 days.
This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.
State Tax Returns
Michigan will follow the Federal recommendation regarding the extended deadlines. May 17th for filing individual returns, a extension can be filed to extend until October 15th, 2021. This relief does not apply to estimated tax payments. Those will remain due on April 15th, 2021.
Contact us today if you have any questions regarding filings of 1040 returns for the 2020 filing year.
