IRS Extends 2020 Individual Income Tax Return Filing and Tax Payment Deadline from April 15 to May 17, 2021

On March 17, 2021, the IRS announced that it was extending, from April 15, 2021 to May 17, 2021, the deadline for filing a 2020 federal individual income tax return and the deadline for paying 2020 federal individual income tax.  The IRS will not impose late filing or late payment penalties, and will not charge interest for the late payment of tax, if an individual income tax return is filed, and the tax due is paid, by May 17, 2021.  The IRS has indicated that formal guidance will be released in the coming days.

The extension to May 17 is automatic; individuals do not need to contact the IRS or file an extension request.  A further extension of time to file a 2020 federal individual income tax return is available if an IRS Form 4868 is filed with the IRS on or before May 17; but, filing Form 4868 by May 17 will not extend the time to pay any individual income tax due beyond May 17.

Importantly, the extension does not apply to corporation income, gift, estate, or any other type of federal tax (other than self-employment tax reported on, and paid with, an individual income tax return).  Moreover, the extension does not apply to 2021 estimated income tax payments due by April 15, 2021. 

State individual income tax return filing and income tax payment deadlines are not extended as a result of the IRS’s grant of a federal-level extension.  States will need to announce their own grant of an extension.  As of the time of the release of this alert, New York State had not announced that it would be granting similar relief. 

The tax professionals at Hodgson Russ LLP will continue to monitor this relief and publish updates as information becomes available. If you would like to discuss how the individual income tax return filing and payment deferral may impact your tax situation, please contact James Bandoblu (716.848.1351), Joseph Rekrut (716.848.1715) or any of the attorneys in our Tax Practice.