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IRS Extends More 2021 Tax Deadlines, But Estimated Payments Still Due April 15, 2021

In addition to extending the 2021 tax filing season, the IRS says individuals now have until May 17, 2021, to meet certain deadlines that would normally fall on April 15, such as contributing to the IRA and filing certain refund requests.

This follows a prior notice from the IRS on March 17, that the federal deadline for filing income tax for individuals for the tax year 2020 was extended from April 15, 2021 to May 17, 2021. Notice 2021-21 PDF provides details on additional tax deadlines that have been postponed until May 17.

The time for payment of contributions to the IRA and health savings accounts has been extended until May 17

Extending the application deadline for Form 1040, the series returns on May 17, the IRS automatically postpones to the same date the time when individuals need to pay 2020 contributions to their individual retirement arrangements (IRA and Roth IRA), health savings accounts (HSA) Archer Medical Savings accounts (Archer MSA) and Coverdell Educational Savings Accounts (Coverdell ESA). This deferral also automatically defers for May 17, 2021, the time to report and pay an additional 10% tax on amounts included in gross income from the 2020 IRA allocation or workplace retirement plans. Notice 2021-21 also defers the due date for the refund from Form 5498 relating to these accounts for 30 June 2021.

Refund for which was not requested in 2017 – deadline extended to May 17

For income tax returns for 2017, the usual deadline for filing a refund claim on April 15 has also been extended to May 17, 2021. The law provides a three-year framework for claiming a refund. If taxpayers do not file a return within three years, the money becomes the property of the U.S. Treasury. The law requires taxpayers to properly address, mail, and ensure that postal mail is mail by May 17, 2021.

In addition, foreign funds and properties with federal obligations to file or pay income tax, which file Form 1040-NR, now have a deadline of May 17, 2021.

Deadline for AFSP 2021 postponed to 17 May

Tax trainees interested in voluntarily participating in the Annual Seasonal Submission Program (AFSP) for the calendar year 2021 now have until May 17, 2021 to file their application with the State Revenue Administration. The usual due date is April 15th.

Details of this extension can be found in Notice 2021-21, published on IRS.gov. For more information on Annual application program, visit Tax pros page on IRS.gov.

The scheduled tax payment is due on April 15

The latest notice, 2021-21, does not change the deadline for estimating tax payments from 15 April 2021; these payments are still due on April 15th. Tax must be paid while taxpayers earn or generate income during the year, either by withholding or estimated tax payments. In general, estimated quarterly tax payments to the tax administration are made by people whose income is not subject to withholding income tax, including self-employment income, interest, dividends, alimony, or rental income. For most taxpayers, the tax is automatically withheld from the receipt of the check and the employer submits it to the tax administration.

Relationship updates tax relief as a result of the COVID-19 pandemic can be found at IRS.gov.