UPDATED: March 31, 2021
As the effects of the pandemic continue, there were many discussions about the possibility of tax deadline extensions. Below is the information that we currently have on tax deadlines that have officially been extended.
Federal Tax Deadline Extended for Individuals
On March, 17, 2021, the Treasury Department and the IRS announced that they would be extending the federal income tax filing due date for individuals for the 2020 tax year to May 17, 2021. The due date for federal income tax payments for the 2020 tax year has also been extended to May 17, 2021, without penalties and interest, regardless of the amount due.
This is an automatic extension so no forms will need to be filed in order to take advantage of the extension. This extension only applies to the individual federal tax deadline. Each state will need to make their own decision.
The federal extension does not include Q1 2021 estimated tax filings and payments with an April 15, 2021 deadline.
On March 29, 2021, the IRS issued Notice 2021-21, extending the following deadlines to May 17, 2021:
- IRAs and Roth IRAs. Making contributions to IRAs and Roth IRAs has been extended to May 17, 2021.
- IRA Distributions. The time for reporting and paying the 10% additional tax on 2020 distributions from IRAs or workplace-based retirement plans has been extended to May 17, 2021. Please note that that the deadline for filing Form 5498 (IRA Contribution Information) series returns related to these accounts is extended to June 30, 2021.
- Health and Education Accounts. Making contributions to health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs) and Coverdell education savings accounts has been extended to May 17, 2021.
- 2017 Refunds. Making refund claims for the 2017 tax year, which are normally due April 15, has been extended to May 17, 2021. Taxpayers must properly address, mail, and ensure the refund claim (e.g., return) is postmarked on or before May 17, 2021.
- Form 1040-NR. Returns of foreign trusts and estates with federal income tax filing or payment obligations that file Form 1040-NR.
- Annual Filing Season Program. The application deadline for the Annual Filing Season Program (AFSP) for calendar year 2021 has been extended to May 17, 2021.
Maryland Tax Deadline Extensions
The Comptroller of Maryland, Peter Franchot, announced that Maryland has extended their state income tax deadline to July 15, 2021. The extension applies to certain individual, corporate, pass-through entity and fiduciary income tax filings and payments.
Interest and late payment penalties have been waived for tax year 2020 income taxes that would typically be due on any date between January 1, 2021 and July 15, 2021, so long as those payments are made by July 15, 2021.
To read more about Maryland’s tax deadlines that have been extended, including extensions on sales and use tax returns, see this update: Maryland Comptroller Extends Certain Tax Deadlines
Pennsylvania Personal Income Tax Filing Deadline Extension
On March 18, 2021, the Pennsylvania Department of Revenue announced that the deadline has been extended to May 17, 2021 for Pennsylvania personal income tax returns for the 2020 tax year. The deadline for income tax payments for the 2020 tax year has also been extended to May 17, 2021. Penalties and interest on final 2020 personal income tax returns and payments for the 2020 tax year will be waived through the new deadline of May 17, 2021.
In their announcement, the Pennsylvania Department of Revenue stated that those who make estimated income tax payments should continue to do so on the same filing schedule as normal, including taxpayers with estimated tax payments due on April 15, 2021.
Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our Firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.