On March 17th, we received the news that the IRS has pushed back the tax filing and payment deadline for Individuals to May 17th. While we welcome the additional time during this challenging tax season, this change comes with some important caveats. We currently know the following:
- The filing date for Individual tax returns (Form 1040) has been pushed back to May 17, 2021
- The payment due date for 2020 tax year balances due only has been pushed back to May 17, 2021
- Q1 Estimated tax payments for the 2021 tax year are still due April 15, 2021
- Corporations, trusts, and presumably other filings such as gift tax returns are still due April 15, 2021 unless an extension is requested. Payments for the 2020 tax year are also still due April 15, 2021
- IRA and HSA Contributions are due May 17, 2021 (Confirmed by the IRS on March 24, 2021)
- The state of California has conformed to the federal changes for the filing date and payment date for the 2020 tax year for Individuals – The state also retains the original due dates for Corporations, trusts, Q1 2021 payments and so on – the same as federal.
The IRS is approximately 25-30% behind this year in terms of number of returns processed. We strongly encourage you to continue to send in your tax documentation as soon as possible and no later than April 1, 2021 to give your Wheeler Accountants preparer time to complete your tax filing.
If you expect you will need an extension of time to file beyond the May 17th due date, please let us know right away. Your tax preparer may also recommend an extension if your specific circumstances warrant it; for example, if you are impacted by any of the new tax laws that we are awaiting further guidance on from the IRS or Franchise Tax Board, or we feel you may benefit from waiting to file in some other capacity.