On March 17, 2021, the IRS announced that the federal income tax filing deadline for the 2020 tax year has been extended from April 15 to May 17.
In light of the ongoing COVID-19 pandemic, the IRS is automatically extending the filing deadline for all individual taxpayers, as well as extending the deadline for 2020 federal income tax payments. No action is required to take advantage of the extension, but any unpaid balances after May 17 will accrue interest and penalties.
Confirm State Filing Deadlines
It is important to note that a federal tax filing extension does not necessarily equate to a state tax filing extension. Luckily, many of us are Pennsylvanians and the PA Department of Revenue also extended the deadline to May 17th. If you live in another state it is important that you confirm the tax filing deadline, as well as any other state in which you are required to file a return. In addition, this extension does not apply to estimated tax payments due on April 15.
The IRS has been silent thus far regarding how the extension will affect the deadline for IRA contributions, but we will provide more information as it becomes available. If you have any questions, please don’t hesitate to contact our office.