IRS Extends Tax Submitting Deadline to Could 17 for People and Self-Employed

Simply final month our very personal Barbara Weltman wrote an article about tax extension myths. We don’t know if the Treasury Division and Inner Income Service learn it, however they only introduced the extension of the tax submitting and fee deadline to Could 17. The extension will apply to people and the self-employed.

Within the announcement, the IRS says the postponement applies to federal revenue tax funds for the 2020 tax 12 months due on April 15, 2021. There won’t be penalties and curiosity, no matter how a lot you owe.

As for penalties, curiosity, and additions to tax, they won’t start to accrue on any remaining unpaid balances till Could 17, 2021. And these taxpayers will keep away from curiosity and penalties on the taxes paid by Could 17.



IRS Extends Tax Submitting Deadline to Could 17 for People and Self-Employed

Within the announcement for the extension, IRS Commissioner Chuck Rettig says the purpose is to assist Individuals tackle the challenges introduced on by the pandemic. Rettig provides, taxpayers, ought to file as early as doable, particularly in the event that they anticipate refunds. And one of the simplest ways to file is electronically with direct deposit.

Some Reduction for the Self-Employed

Near 30% of Individuals are self-employed, and the pandemic has been significantly onerous on them. And though the one-month extension by the IRS could appear trivial at first, nonetheless it’s a reduction. That one month will be the distinction between having the ability to provide you with the cash to pay their taxes or begin paying penalties and curiosity.

Overview of the Key Factors from the Announcement

  • Particular person taxpayers may also postpone federal revenue tax funds for the 2020 tax 12 months due on April 15, 2021, to Could 17, 2021.
  • There won’t be penalties and curiosity, whatever the quantity owed.
  • This postponement applies to particular person taxpayers, together with people who pay self-employment tax.
  • Penalties, curiosity, and additions to tax will start to accrue on any remaining unpaid balances as of Could 17, 2021.
  • Particular person taxpayers don’t have to file any types or name the IRS to qualify for this automated federal tax submitting and fee reduction.
  • This reduction doesn’t apply to estimated tax funds which might be due on April 15, 2021. These funds are nonetheless due on April 15.
  • Taxes have to be paid as taxpayers earn or obtain revenue in the course of the 12 months, both by withholding or estimated tax funds.

 

Further Extension

Keep in mind you possibly can all the time ask for an extra extension if the Could 17 deadline isn’t sufficient. The IRS says you possibly can request a submitting extension till Oct. 15 by submitting Kind 4868. You should utilize tax software program, your tax skilled, or the Free File hyperlink on IRS.gov.

Once you file the extension utilizing Kind 4868 you should have till October 15 to file your 2020 tax return. Nevertheless, it doesn’t provide you with an extension of time to pay taxes which might be due. If you wish to keep away from curiosity and penalties, it is best to pay your federal revenue tax due by Could 17, 2021.

There’s one other extension for the winter storm catastrophe reduction for Louisiana, Oklahoma, and Texas. For victims of the storm, these states have till June 15, 2021, to file particular person and enterprise tax returns and make tax funds. The brand new extension to Could 17 won’t have an effect on their June deadline.

The IRS says it’s going to present formal steerage on this announcement within the coming days, so keep watch over its web site, IRS.gov.

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