The Internal Revenue Service (IRS) yesterday announced that an extension of the filing deadline for the 2020 tax year for federal individual income tax returns from April 15 to May 17, 2021. The federal extension does not apply to estimated tax payments due on April 15, 2021.
The IRS action follows Maryland Comptroller Peter Franchot’s announcement last week to extend the filing deadline for 2020 state income tax returns by three months to July 15, 2021. The state extension applies to individual, pass-through, fiduciary, and corporate income tax returns. No interest or penalties will be assessed if returns are filed and taxes owed are paid by the new deadline.
According to a press release from the Maryland Comptroller:
The federal filing extension would “help taxpayers navigate the unusual circumstances related to the pandemic,” and let the agency work on important tax administration responsibilities, IRS Commissioner Chuck Rettig said in an agency news release.
Individual taxpayers do not need to file any forms or contact the IRS to qualify for the federal extension; it will apply automatically for all taxpayers. As always, individual taxpayers who need additional time to file beyond the May 17 deadline can request a further extension until October 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.
Stay tuned to Conduit Street for more information.