Extending Tax Returns Filing Deadline Issued by IRS
The ongoing pandemic conditions have given rise to the question related to taxation. Therefore the IRS exceeded the deadline for filing 2020 federal income tax returns from April 15 to May 17, 2021.
How did this happen?
The intense pressure from lawmakers, tax professionals on the IRS to give taxpayers more time to file their 2020 federal income tax returns. This will give the tax agency the time to adjust the computer systems, forms, and backlogs to account for the tax changes that are recently enacted according to the American Rescue Plan Act. The most noticeable is the $10,200 exemption for unemployment compensation received in 2020.
Payment of federal income taxes 2020 to May 17 can also be delayed without any penalty or interest – the delay is applicable for the self-employed taxes too.
Note: Any penalties, interest, or additions to tax will be considered accrued/outstanding after May 17.