Federal Tax Deadline for Individuals Pushed to May 17th

Last year, in response to the growing pandemic, the Internal Revenue Service and Treasury Department postponed the tax deadline by three months. This week, both government agencies announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically postponed from April 15th, 2021, to May 17th, 2021.

Policymakers acknowledged that limited in-person tax assistance and other logistical hurdles, like issuing stimulus checks tied to new economic relief legislation, could create complications for both taxpayers and government agencies. The one-month postponement will give taxpayers some additional breathing room to meet their tax obligations during what could be one of the most challenging tax seasons in recent history.

Important items to note:

• Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15th, 2021, to May 17th, 2021, without penalties and interest, regardless of the amount owed.
• This relief does not apply to estimated tax payments that are due on April 15th, 2021.
• No filings need to be made to take advantage of this postponement. Individual extensions can be filed on or before May 17, 2021, to receive additional time to file tax returns through October 15, 2021.
• No other federal tax return type or tax year have been postponed.

Please be advised this guidance is unofficial, and we are still waiting for the IRS and Treasury Department to provide guidance in the coming days. If the 2020 tax filing season was any indication of what is to come, we should expect that guidance could change frequently and rapidly. As such, we will continue to monitor the situation and update you. In the meantime, please do not hesitate to reach out to a member of our team with any questions.

For information on Maryland’s income tax filing and payment extensions, click here.