desktop

IRS and Treasury Department Announce U.S. Tax Day Deadline Extended From April 15 to May 17, 2021

The awaited IRS Formal Guidance, re. the March 17, 2021 IR-2021-59 to delay the late filing and late payment deadline for the 2020 tax season from April 15 to May 17, 2021 has arrived.

 

Protax Consulting Services Inc (PCSI)

Firm Statement # 2 Tax Season 2020- (dated April 3, 2021)

Update- Tax Deadlines Status:

 

Further Guidance Released March 29, 2021- IRS Notice 2021-21

IRS and Treasury Department Announce U.S. Tax Day Deadline Extended From April 15 to May 17, 2021Includes: IRAs/ Roth IRAs/ HSAs/ Archer MSAs/Coverdell ESAs Update

 

Dear Clients and Colleagues:

The awaited IRS Formal Guidance, re. the March 17, 2021 IR-2021-59 to delay the late filing and late payment deadline for the 2020 tax season from April 15 to May 17, 2021 has arrived.

Tax deadline status-

On Monday, March 29, 2021 through IR-2021-67 the IRS released IRS Notice 2021-21 as formal guidance on the March 17, 2021 IR-2021-59  Release re. the extension of 2020 tax season due date for late payments and late filing for individuals from April 15, 2021 to May 17, 2021.

This Monday, March 29, 2021 guidance IRS Notice 2021-21 clarifies and adds details about the postponement.  Like the news release before it under IR-2021-59 this Notice does not extend the April 15 due dates for 2021 estimated tax payments for the 2021 individual tax year. 

This Notice 2021-21 makes clear that the postponement of 2020 tax season due date for late payments and late filing for individuals from April 15, 2021 to May 17, 2021, applies to all individuals who file Federal individual income tax returns on the entire Form 1040 Series.  That is:

  1. Form(s) 1040, 1040-SR, 1040-NR for nonresident filers, 1040-PR, 1040-SS or 1040(SP),
  2. Also applies to the filing of all Schedules, Returns and other Forms, Elections and Attachments that are filed to the Form 1040 Series or are required to be filed by the due date of the Form 1040 Series, the IRS lists as examples:
    1. Schedules H and SE, and
    2. Form(s) 965-a, 3520, 5329, 5471, 8621, 8858, 8865, 8915-E and 8938 and
    3. Elections and attachments that are made or required to be made on a timely filed form in the Form 1040 Series

If the above Forms, Schedules and Elections are filed on or before May 17, 2021

IRAs/ Roth IRAs/ HSAs/ Archer MSAs/Coverdell ESAs- The Notice 2021-21 also automatically postpones to May 17, 2021 from April 15, 2021 the time for affected taxpayers to make 2020 contributions to their individual retirement arrangements (both IRAs and ROTH IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs) and Coverdell education savings accounts (Coverdell ESAs).

-Postponement also applies to the IRC Sec 72(t) 10% additional tax (penalty) includable in gross income from 2020 early distributions from IRAs or work place retirement plans like 401(k) or 403(b).

-The IRS makes clear again taxpayers do not have to file a form to obtain relief under Notice 2021-21 2020 tax season due date for late payments and late filing for individuals from April 15, 2021 to May 17, 2021.

-Finally again the IRS makes clear again that Notice 2021-21 re 2020 tax season due date for late payments and late filing for individuals from April 15, 2021 to May 17, 2021, does not apply to any other type of taxpayer (only individuals not businesses) or federal tax return, other than what is listed.

From March 20, 2021 PCSI Firm Statement –

New York State Department of Tax and Finance (NYSDTF)-

On Friday, March 19, 2021 the New York State Department of Tax and Finance (NYSDTF) issued N-21-1 Announcing that they were aligning with the IRS March 17, 2021 IR-2021-59 extended the due date for personal income tax returns, and related tax payments, for the 2020 tax year from April 15, 2021, to May 17, 2021.

Accordingly, 2020 New York State personal income tax returns originally due on April 15, 2021, and related payments of tax, will not be subject to penalties or interest if filed and paid by May 17, 2021.

However, noting in accordance with the above IRS announcement that this relief does not apply to estimated tax payments for the 2021 tax year that are due on April 15, 2021. These payments are still due on April 15, 2021.

 

Other State Compliance with Federal Notice 2021-21

The AICPA (American Institute of Certified Public Accountants)- our National governing Federal body has compiled a complete listing of all state compliances with the Federal Notice 2021-21 re 2020 tax season due date for late payments and late filing for individuals from April 15, 2021 to May 17, 2021 found at:

https://future.aicpa.org/resources/download/state-tax-due-dates-updated-for-covid-19-relief

 

What this means for PCSI Clients- 2020 Extension Policy:

An extension of the filing deadline from April 15 to May 17, 2021 to file 2020 U.S. individual income tax returns is simply not long enough for a majority of our clients. 

Regardless of the new May 17, 2021 payment and filing deadline, as a failsafe procedure and in an effort to protect your interests this PCSI filed Form 4868 and related State extensions to extend your 2020 U.S. and State income tax filings until October 15, 2021 for all tax returns that were in house or expected to be received in accordance with PCSI literature that is currently in your possession.

We strongly encourage all clients who have not sent us their 2020 Protax Organizer Packages as of yet to do so as soon as possible.  This is only a one (1) month extension of time to file and pay and in no way represents a meaningful delay.

If you need to contact us for any reason, please email or telephone me, although email is preferable. 

Again, we covet your trust and loyalty, and we are privileged to provide our professional CPA U.S. income tax services to you.

Given our current workload, we kindly ask at this time that you refrain from replying to this email so that we may concentrate our efforts on serving our valued clientele community during this busy time.

 

Marc J Strohl, CPA & Staff

Principal

Protax Consulting Services Inc.

Categories

Member and Featured Faculty of

Member and Featured Faculty of