IRS Extends 2020 Tax Filing and Tax Payment Deadlines, But Not 2021 Estimate Dates

In News Release IR-2021-59, published on March 17, 2021, the IRS and Treasury Department announced that the Federal income tax filing due date for individuals for the 2020 tax year is automatically extended from April 15, 2021, to May 17, 2021.

Individual taxpayers can also postpone Federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalty or interest regardless of the amount owed. The postponement applies to all individual taxpayers, including individuals paying self-employment tax. Penalties, interest and additions to tax will begin to accrue on any unpaid balance as of May 17, 2021. But, individual taxpayers will automatically avoid interest and penalty on those taxes paid by May 17.

Individual taxpayers do not need to file any form or call the IRS to qualify for this automatic Federal tax filing and payment relief.

This relief does not apply to 2021 estimated tax payments that are due on April 15 or any subsequent date. Those payments are still due on April 15 and the usual dates.

The Federal tax filing deadline postponement to May 17, 2021, applies only to individual Federal income returns and tax (including self-employment tax) payments that would be due April 15, 2021, not state tax payments or deposits or payments of any other type of Federal tax.

Following the disaster declarations issued by the Federal Emergency Management Agency earlier this year, the IRS announced relief for victims of the February winter storms in Texas, Oklahoma and Louisiana. Those states have until June 15, 2021, to file various individual and business tax returns and make tax payments. The Federal automatic filing and payment extension in IR-2021-59 to May 17 does not affect that June deadline.

The State of Michigan announced on Friday, March 19, that it would adopt the Federal extensions for state tax filings and payments in a congruent manner.

This alert is just a summary of the new tax developments. If you desire more information about this topic, please contact Mike Cumming at 248-203-0740 or mcumming@dykema.com, Robert Nelson (210-554-5266 or RNelson@dykema.com), or your Dykema relationship attorney.