Multiple news reports state that the IRS will extend the April 15th tax deadline to May 15th. Because May 15th falls on a Saturday, that effectively pushes the deadline to Monday, May 17th. I would expect this would be for all April 15 deadlines (primarily Forms 1040, 1041, and 1120) but we will have to wait for the formal announcement.
IRS Commissioner Chuck Rettig is testifying on Capital Hill tomorrow, and I would expect him to make the announcement as part of his testimony. I will have more on this when it is officially announced.
UPDATE:
It’s official — individual tax returns have been extended; the IRS’s official announcement is here. However, the first quarter estimated payments have not been extended. This is dumb because many taxpayers have their estimated payments made by their tax professionals when they file their returns. Consider John Smith. Mr. Smith legally files his tax return on May 1st and is now late with his 1st Quarter 2021 Estimated Payment! Sorry, IRS, the first quarter estimated payment should be extended until May 15th, too.
And there’s more that have not been extended. Corporate tax returns (Form 1120) due on April 15th are still due on April 15th. Trust and estate returns (Form 1041) due on April 15th are also still due on April 15th. Not extending all the deadlines is going to cause confusion–especially for those who file trust and estate returns.
There’s a cliche about half a loaf of bread being better than none. I’d say the IRS gave taxpayers not even half a loaf of bread; rather, just a couple of slices of bread.
Tags: 2021.Tax.Season