On March 29, 2021, the IRS announced that individuals now have until May 17, 2021, to meet specified deadlines that would typically fall on April 15, 2021. This announcement expands the IRS guidance issued earlier in March that extended the federal income tax filing deadline for individuals from April 15, 2021, to May 17, 2021.

Included in this most recent IRS notice:

  • All returns in the 1040 series (1040, 1040NR, etc.) receive this extension to May 17, 2021.
  • The extension also automatically applies to IRA contributions for the 2020 tax year, indicating that taxpayers have until May 17, 2021, to make 2020 IRA contributions.
  • This allowance also impacts 1040 returns with a statute of limitations expiring (i.e., 2017 Form 1040 return filed April 15, 2018, would typically have its SOL lapse on April 15, 2021. This statute now expires on May 17, 2021).
  • Any filing interest and penalties will start accruing on May 18, 2021.

What is noticeably absent from this notice:

  • Gift tax returns are not mentioned. It appears that separate gift tax extensions (Form 8892) will have to be filed by April 15, 2021.
  • The IRS explicitly mentions that this extension does not apply to any other payment or deposit of any federal tax type.
  • The IRS also reiterated that this extension does not apply to Q1 estimated tax payments, which are still due on April 15, 2021.

As always, federal announcements in the era of the COVID-19 pandemic are expected, especially as they relate to relief efforts and federal income taxes. CRI continues to monitor all U.S. Treasury and IRS announcements and will communicate those as they are determined. If you are concerned about how these new allowances will impact your 2020 tax filing and payment status or have questions about state-level filing and payment deadlines, we encourage you to reach out to your CRI advisor.