Taxpayers are getting more time to meet some tax deadlines that would normally fall on April 15, such as making IRA contributions and filling certain claims for a refund.
The deadline shift is outlined in Notice 2021-21, which pushes those deadlines to May 17, 2021.
The Internal Revenue Service had announced previously that the federal income tax filing due date for individuals had been extended from April 15 to May 17.
Here’s a look at the various deadlines included in this latest push-back.
Get more time to make contributions to IRAs, health savings accounts
In extending the deadline to file Form 1040-series returns to May 17, the IRS is automatically postponing the deadline to make 2020 contributions to an individual retirement arrangement. This includes IRAs, Roth IRAs, health savings accounts (HSAs), Archer Medical Savings Accounts (Archer HSAs), and Coverdell education savings accounts (Coverdell ESAs).
The time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans has also been delayed to May 17.
Notice 2021-21 also pushes back the due date for Form 5498-series returns related to these accounts to June 30, 2021.
Deadline to seek 2017 refunds extended
For tax year 2017 federal income tax returns, normally the deadline to claim a refund would be April 15, 2021. The law provides a three-year window of opportunity to claim a refund. This deadline has been moved to the May 17 date for filing for 2017 refunds. Note, however, that while the deadline for filing is pushed back, failure to file by that the new date still means the refunds become the property of the U.S. Treasury.
In order to successfully claim a 2017 refund, taxpayers need to properly address, mail and ensure the tax return is postmarked by the May 17 deadline.
May 17 is also the new deadline for foreign trusts and estates with federal tax filing or other payment obligations who file Form 1040-NR.
2021 Annual Filing Season Program
Those tax professionals who are interested in taking part in the Annual Filing Season Program (AFSP) for calendar-year 2021 now have until May 17 to file their application with the Internal Revenue Service. The normal due date is April 15.
Notice 2021-21 has details on the extension, and is posted on IRS.gov. Visit the Tax Pros page on the website for more information about the Annual Filing Season Program.
Estimated tax payments not postponed
Notice 2021-21 does not change the April 15 deadline for estimated tax payments; those are still due on April 15.
Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments.
In general, estimated tax payments are made quarterly to the IRS by taxpayers whose income isn’t subject to income tax withholding. This can include self-employment income, interest, dividends, alimony or rental income.
Most taxpayers have their taxes automatically withheld from their paychecks and submitted to the IRS by their employers.
To find updates on tax relief as a result of the COVID-19 pandemic, visit IRS.gov.
Sources: IRS extends additional tax deadlines for individuals to May 17
Upstate Tax Professionals