On March 17, 2021, the Treasury Department and the Internal Revenue Service (IRS) announced an extended deadline for tax filing in connection to the ongoing circumstances of the pandemic as well as existing 2019 backlogs. Filing has been pushed from April 15, 2021, to May 17, 2021.

Below is a brief summary of this announcement:

Summary of the relief.

The new one-month extension to file and pay “applies to individual taxpayers, including individuals who pay self-employment tax.” This postponement allows taxpayers to file federal income tax payments with the new deadline of May 17, 2021, “without penalties and interest, regardless of the amount owed.”

On or after May 17, 2021, penalties, interest, and additions to tax will begin to accrue on any outstanding unpaid balances. Individual taxpayers who file their taxes by May 17 will be automatically excluded from interest and penalties.

Note: The extension does not apply to estimated tax payments due on April 15, 2021.

Despite the extended deadline, the IRS strongly encourages taxpayers to “consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

State-specific information.

It’s important to note that “The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax.”

Some states are following the IRS with the extension. However, the State deadlines vary, and the IRS advises taxpayers to determine those specifics with their State tax authorities. The following is a resource the IRS provides for state-specific information: https://www.taxadmin.org/state-tax-agencies.

Extension beyond May 17 information.

For businesses that require additional time for filing beyond the May 17 deadline, you must fill out Form 7004.

Individual taxpayers that require additional time for filing can request an extension by filing Form 4868 through their tax professional, tax software, or utilizing the IRS Free File tool.

For more information on this extension, read the IRS announcement titled “Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline.” Additional formal guidance is forthcoming from the IRS.

PrimePay’s 2021 Quick Wage & Tax Guide

Our 2021 Quick Wage & Tax Guide is now available for you. In this guide, you will find state-by-state wage information, unemployment insurance rates, and federal numbers for taxable wages, contribution limits, and more.

Click here to learn more.

PrimePay is here to help you.

Working with a payroll service and human capital management (HCM) provider can help you stay compliant.

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Disclaimer: Please note that this is not all-inclusive. Our guidance is designed only to give general information on the issues actually covered. It is not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion. Consult your own legal advisor regarding the specific application of the information to your own plan.