The Treasury Department and the IRS announced on March 17, 2021, that individuals may file their 2020 tax returns on or before May 17, 2021 without imposition of penalties or interest. The announcement effectively extends the deadline to file 2020 taxes to May 17, 2021. However, the extension of time only applies to individual tax returns. It does not apply to other tax types such as corporation income tax, trust taxes, etc. Furthermore, the extension of time does not apply to 2021 first quarter estimates, which still must be remitted on or before April 15, 2021. Taxpayers who wish to obtain an extension of time beyond May 17, 2021, will be permitted to file Form 4868, which will extend the time to file until October 15, 2021. As in prior years, the extension of time to file does not extend the time to pay, and thus, payment must be remitted on or before May 17, 2021 in order to avoid late payment penalties. Note, that the statutory due date remains April 15, 2021. Thus, taxpayers who file amended returns for claims of refund or who are under audit in future years for their 2020 tax returns should continue to use April 15, 2021 for purposes of evaluating the statute of limitations for the 2020 return.
For more information, refer to IRS Notice 2021-59.
Kentucky, Indiana, and Ohio
Kentucky, Indiana, and Ohio have all similarly extended the due date for 2020 individual tax filings until May 17, 2021. The extensions apply only to individual 2020 tax filings and do not apply to any other tax types. First quarter estimated payments remain unaffected. Taxpayers needing time beyond May 17, 2021 may file an extension of time, which will extend the filing deadline, which, in most cases, will be October 15, 2021.
For more information, refer to Kentucky’s announcement, Indiana’s announcement, and Ohio’s announcement. Ohio has also indicated that the extension will apply to school district income tax. All three states generally adopt the same treatment as the IRS.
All questions regarding these tax changes or others that may affect your taxes can be addressed to:
Adam Hines, Principal
John Michel, Member