by: 8NewsNow employees, Associated Press
Posted: Apr 15, 2021 / 4:07 PM PDTUpdated: April 15, 2021 / 6:52 PM PDT
LAS VEGAS (KLAS / AP) – Americans will have extra time to prepare their taxes. The Internal Revenue Service has moved the traditional tax return deadline from April 15 to May 17.
The IRS announced the decision in mid-March. The move gives taxpayers and the IRS more leeway to cope with the changes brought on by the pandemic. It is important to note that the new deadline does not apply to individuals making estimated tax payments. These are due on April 15th.
“The IRS intends to continue doing everything possible to help taxpayers cope with the unusual circumstances surrounding the pandemic while working on important tax administration tasks,” IRS Commissioner Chuck Rettig said in a statement.
NEW EXTENSION ALLOWS THE FOLLOWING:
- Postpones when individual taxpayers are required to file their tax returns and when their payment is due
- Taxpayers who owe money would not receive any further penalties or interest if they paid up 17th of May
- A new deadline applies to people who pay self-employment tax
- If you need more time after May 17th, you can apply for an extension until October 15th
- New deadline Not apply to estimated tax payments due on April 15th; these remain due on that day. (Taxes must be paid as taxpayers earn or receive income during the year, either through withholding tax or through estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by individuals whose income is not subject to withholding tax, including self-tax labor income , Interest, dividends, alimony, or rental income. Most taxpayers have their taxes automatically withheld from their paychecks and filed with the IRS by their employer.)
- April 15: Estimated Tax Payments Due
- 17th of May: Tax return deadline
- Deadline for contributions to IRAs and health savings accounts
- Unclaimed refunds for the 2017 deadline
- Application deadline for AFSP (Annual Filing Season Program)
The decision to extend the deadline was made after an intense year for the chronically underfunded IRS. The pandemic hit mid-way through last year’s tax filing season and brought the agency back on processing. The IRS has also been a major player in the distribution of government aid payments and is currently helping to send out the third round of payments in the middle of the current tax filing season.
In addition, the extension gives the IRS time to issue guidance on recent tax law changes. The American bailout plan excludes the first $ 10,200 of unemployment benefits from federal taxes for those earning less than $ 150,000.
The IRS continues to urge people to apply as soon as possible, especially those who are owed refunds. In some cases, filing will help taxpayers get the remaining relief payments they are entitled to more quickly.