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Authored by Paul Dillon, Michelle Hobbs, Mike Schiavo and Michael Wronsky

The IRS announced in an informal statement that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended to May 17, 2021, from April 15, 2021.

The situation remains fluid and the IRS will be providing formal guidance in the coming days. Unlike last year’s across-the-board extension, this relief initially appears to be much more limited. Whether the relief will be expanded to apply to other taxpayers, tax filings or other time-sensitive actions remains uncertain.

Here is a summary of the key points from the IRS news release:

  • Individual taxpayers can also postpone, to May 17, 2021, federal income tax payments for the 2020 tax year originally due April 15, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including those who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021.
  •  Estimated tax payments for the 2021 tax year are still due April 15, 2021.  
  • This announcement does not impact any state filing deadlines.
  • Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request an extension until Oct. 15 by filing Form 4868.
  • The IRS statement made no mention of extending this relief to other filings due April 15 including those for C corporations, trusts, etc.
  • There is also no current indication that the extension would apply to other time-sensitive matters, for example, section 1031 exchanges and opportunity zone investments.

We encourage you to reach out to your Baker Tilly adviser regarding how any of the above may affect your tax situation.

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.

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