On March 17, 2021, the IRS announced that the tax year 2020 federal income tax filing due date for individuals will be postponed until May 17, 2021. Individual taxpayers needing additional time to file may still request an extension on Form 4868 for an extended deadline of October 15, 2021.
Individual taxpayers can also postpone the tax year 2020 federal income tax payments due April 15, 2021, to May 17, 2021, without additional penalties and interest, regardless of the amount owed. This postponement currently applies only to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest, and additions to tax will begin to accrue on any remaining unpaid balances
as of May 17, 2021.
It is important to note that this relief does not apply to tax the year 2021 federal estimated tax payments. The first quarterly 2021 federal estimated tax payment is still due on April 15, 2021.
Similarly, the California Franchise Tax Board has confirmed that it will also postpone the filing and payment due date for the tax year 2020 for individual taxpayers until May 17, 2021. Like the IRS, this relief does not apply to the tax year 2021 California estimated tax payments. The first quarterly 2021 California estimated tax payment is still due on April 15.
Regarding Individual Retirement Account (IRA) and Health Savings Account (HSA) contributions for the tax year 2020, the IRS recently confirmed that the due date has also been postponed to May 17, 2021, to coincide with the extended date for filing individual tax returns.
No formal guidance has been issued regarding extended due dates for gift tax returns (Form 709). Taxpayers who wish to extend their gift tax return should file Form 4868 or Form 8892 for an extended deadline of October 15, 2021. We recommend that you submit your gift tax return or extension by the original due date of April 15, 2021.
The IRS is expected to issue additional formal guidance on the due date extension in the coming days. We will continue to monitor these developments and keep you updated as more information becomes available.
If you have any questions about the automatic due date extensions, please do not hesitate to contact us.