Treasury Department Announces May 17, 2021 Due Date

On March 17, 2021 the Department of the Treasury announced that the Federal income tax filing due date for 2020 individual income tax returns has been automatically extended to May 17, 2021. Individual taxpayers can also defer the associated outstanding tax liability for the 2020 tax year that would otherwise be due on April 15 to May 17, without incurring additional penalty or interest, regardless of the amount owed. The IRS is expected to issue formal guidance in the coming days.

Additional Observations:

• Taxpayers do not need to file any forms to qualify for the automatic one-month extension.
• Taxpayers will be able to file a traditional extension by May 17 to extend their filing deadline to October 15. Any balance of tax due for 2020 will need to paid with that extension in request in May.
• This relief does not apply to estimated tax payments due on April 15 for the 2021 tax year.
• At this time, corporate and fiduciary returns normally due on April 15 are unaffected by this announcement.
• The filing date for certain disaster declaration state residents (LA, OK, TX) had already been extended to June 15. The May 17 extension does not affect residents of those states who already qualified for the June extended due date.
• With a few exceptions, most states still have an April 15 due date for individual income tax filings at this time.

On March 18, 2021, Illinois Governor Pritzker announced that the Illinois individual income tax filings and payment deadline will be extended to May 17, as well. The move mirrors the Federal change, leaving 2021 estimated tax payment due dates unchanged.

At Brown CPA Group, we are closely monitoring this developing situation. We will provide general guidance, as more certainty develops. We will also consider and discuss any applicable opportunities on a client-by-client basis. Please reach out to your Brown CPA Group professional team.

Contributors: David Thibault, Managing Partner; Barry Burchel, Tax Director