The Recent Extension of Income Tax Due Date
The latest announcement made by the Internal Revenue Service (IRS) about the extension of the income tax due date is one that has brought relief to taxpayers across the country. In this post, we take a closer look at all the details about this recent development, including reasons behind the extension, its implications, and frequently asked questions.
Why the Extension?
Generally, the federal income tax filing due date for individuals is April 15. However, the IRS recently decided to push the deadline to a later date. There are numerous reasons behind this decision, one of them being the impact of the COVID-19 pandemic. The global pandemic has left many individuals and businesses scrambling and as such, the extra time to prepare and file their taxes is a welcome flexibility.
Details of the Extension
The IRS has moved the tax filing deadline from April 15 to May 17. This extension applies to both tax payments and tax return filings. This means taxpayers have until May 17 to file their tax returns and to make any payments on taxes due for the year 2020.
Implications of the Extension
The new move offers broad relief for taxpayers, by enabling them to have more time to navigate the complexities of their finances. In addition, those who owe the IRS money also benefit from avoiding interest and penalties on any outstanding payments.
| Date | Detail |
|---|---|
| April 15, 2021 | Original tax due date |
| May 17, 2021 | Extended tax due date |
| June 15, 2021 | Due date for US citizens living abroad |
Frequently Asked Questions on the Income Tax Due Date Extension
1. Who is eligible for the extension?
All taxpayers are eligible for this extension. This includes individuals, trusts, estates, corporations, and others.
2. Do I have to request for the extension?
No, the extension is automatic and taxpayers do not need to file any additional forms or call the IRS to qualify.
3. What about state tax returns?
The federal tax due date extension by the IRS does not affect state tax returns. Taxpayers should check with their state tax agencies for those details.
Concluding Summary
In this post, we analyzed the recent extension of the income tax due date, explored the reasons behind the extension, and detailed its implications. This extension came as a relief for taxpayers struggling amidst the global pandemic. While this extension is a welcome assistance, it’s equally crucial to remember to use this extension wisely to prepare and file your returns in a timely manner.
