IRS Extends Filing and Payment Deadline

Due to the pandemic and the recent passing of the American Rescue Plan Act, the IRS has moved this year’s tax filing deadline from April 15 to May 17, 2021 in order to give taxpayers more time to organize their documents, adjust to changes made in the new tax law and pay their 2020 tax liability.  Most states have changed their deadlines as well to match the new federal date.  Only Iowa, Maryland, Oklahoma, Hawaii and Arizona have different dates from the federal and Arizona is currently trying to extend their deadline.

Interestingly, the IRS pushed last year’s tax deadline as well, but there are a few differences this time.  First, the date is only moved a month instead of the three additional months provided last year.  Second, the due date for estimated tax payments for 2021 has NOT been extended.

2021 Estimated Tax Payments

Estimated tax payments are due quarterly and the due dates have not been changed.  For 2021, those dates are April 15, 2021, June 15, 2021, September 15, 2021 and January 15, 2022.  If you traditionally make estimated tax payments or think they may be due for this year, be sure to calculate the amount and make your first payment timely by the unchanged April 15 deadline to avoid any underpayment penalties.

2020 IRA Contribution Deadline

For those making 2020 contributions to your IRAs, Roth IRAs, and HSAs the deadline has now been extended from April 15 to May 17, 2021, to match the federal tax filing deadline.

If you have any questions about how these changes affect you, we suggest you contact your tax preparer or give us a call as we are happy to help.