As many of you would know, the submission of federal income tax comes with a due date. Those who are required to file the federal income tax for the year 2020 will see an extension of the date. As has been announced by the Treasury Department and Internal Revenue Service, the date for its submission has been extended from 15th April 2021 to 17th May 2021. With respect to the same, guidance will be formally provided by the Internal Revenue Service (IRS).
The IRS understands that the recent times have been difficult for many. Therefore, it believes in doing everything it can to assist the taxpayers in dealing with these times where the COVID-19 pandemic has given everyone unforgettable moments. Chuck Rettig, the Commissioner of the Internal Revenue Service, hopes that the responsibilities relating to tax administration will be sincerely worked upon.
Mr. Rettig further expresses that a new deadline has been made available for filing the taxes. Even then, the taxpayers will be encouraged to file the taxes at the earliest. This will be especially expected from those to whom the refunds are owed. For the electronic submission of the taxes, doing so with direct deposit will be best for getting the refund. Also, this approach will help the taxpayers in a faster way to get their pending stimulus payments.
The payments for the federal income tax can also be postponed for the year 2020. This can be done for the payments that have the due date of 15th April 2021 to 17th May 2021. This shall not be inclusive of any interests, penalties, etc., irrespective of the sum that is owed.
The postponement shall stay applicable to every individual taxpayer. Individuals who are required to submit the self-employment tax can also relate to the same. Any interests, additions, or penalties to tax shall start arising on the balance that stays unpaid with respect to the date – 17th May 2021. In case the taxes are paid by 17th May, any penalties or interests involved can be automatically skipped by the individual taxpayers.
It will not be required on the part of individual taxpayers to submit the forms or refer to the Internal Revenue Service to be qualified for the auto-filing of federal tax as well as the relief of the payment. Individual taxpayers who require extra time for filing the same after 17th May can prefer submitting a request for receiving an extension to file it till 15th October. This can be done by submitting the Form 4868 via tax software, tax professional, or through the “Free File” link from the official site IRS.gov. When the Form 4868 is filed by the taxpayers till 15th October for submitting the return for the 2020 tax year, an extension shall not be given for submitting the due taxes. For escaping any kind of penalties or interests, the taxpayers will be suggested to submit the federal income tax by 17th May 2021.
The Internal Revenue Service encourages the taxpayers, whose refund is due, to go ahead with the filing at the earliest. In a number of instances, the tax refunds that are linked to e-filing can be issued in a period of 21 days. The relief may not remain applicable to the tax payments that are estimated and remain due on 15th April 2021. It is important to know that the payments shall stay due on 15th April. Also, the payment for the same has to be made as the income is received in the tax year. They can be paid either via the estimated or withholding tax payments.
Usually, the tax payments that are estimated are quarterly submitted to the Internal Revenue Service. It is submitted by those whose earning is not subjected to the tax withholding. This will be inclusive of dividends, rental income, interest, self-employment income, alimony, etc. A number of taxpayers prefer withholding their taxes via paychecks. Also, they prefer to submit the same via their employers.
In the case of the state tax returns, the deadline for filing the federal tax has been postponed till 17th May 2021. It is applicable to the tax payments and returns for individual federal income. This will comprise the tax on income from self-employment which would be due on 15th April 2021. The same may not remain applicable to the payments for the state taxes, payments, deposits, federal tax of any other kind, etc. In at least 42 states, the income tax return will have to be filed. This will be in addition to the Columbia district. The filing, as well as the payment deadline, for the same, can vary. Also, they may not necessarily be the same as that of the deadline for federal filing. The taxpayers are always encouraged by the Internal Revenue Service to get the information of such details from the agencies of the state taxes.
Coming to the relief for the winter storm disaster, in February, for Oklahoma, Louisiana, and Texas, certain announcements about these events were made by FEMA or the Federal Emergency Management Agency. Following the same, it was declared by the IRS that for the winter storm victims in Oklahoma, Louisiana, and Texas, the tax payments and returns can be made by 15th June 2021. Also, it should be observed that the extension provided till 17th May will have no impact on the deadline of June.
Should you like to receive more information with respect to disaster relief, you will be suggested to access the page for the same on the official site, IRS.gov.