IRS postpones 2020 individual income tax filing and payment deadline to May 17

On March 17, 2021, the IRS announced that it was extending the filing deadline for 2020 individual income tax returns and payments as the agency continues to catch up on unprocessed 2019 tax returns, undistributed stimulus payments and tax refunds, and additional obligations (including a third round of stimulus payments) following the passage of the American Rescue Plan Act. Additional guidance on this extension of certain income tax returns and income tax payments was provided March 29 in the form of Notice 2021-21. Key points from the March 17 announcement and the March 29 Notice are summarized below, along with our insights.

Where this relief applies

The Treasury postponed the due date from April 15, 2021, to May 17, 2021, to file 2020 federal individual income tax returns and make 2020 tax payments. 

Per the Notice, Treasury Secretary Yellen has determined that persons are considered affected by the COVID-19 pandemic (“Affected Taxpayers”) and eligible for the May 17, 2021, postponement if they file the following returns and attachments and had an original due date of April 15, 2021:

• Form 1040, 1040-SR, 1040-NR, 1040-PR, 1040-SS, or 1040(SP) (collectively, the “Form 1040 series”)
• Form 965-A, 3520, 5329, 5471, 8621, 8858, 8865, 8915-E, or 8938 (Form 1040 series attachments)

The Notice states that Affected Taxpayers also include persons who are required to file Form 5498, 5498-ESA, or 5498-SA (collectively, the “Form 5498 series”), which have an original due date of June 1, 2021; that deadline has been postponed to June 30, 2021. 

Further, the Secretary has determined that this relief also applies to individuals with a period of limitations to file a claim for a refund set to expire on April 15, 2021. Therefore, an amended return filed on or before May 17, 2021, to claim a refund for the 2017 taxable year will be considered timely. 

Affected Taxpayers are not required to file any additional forms in order to obtain the relief provided for in the Notice. 

Where this relief does not apply

Please note that, per the Notice, businesses and other taxpayers that file their taxes on forms other than those in the Form 1040 series are not considered Affected Taxpayers and are ineligible for the May 17, 2021, filing deadline relief.

This relief does not apply to federal estimated individual income tax payments that are due on April 15, 2021, or to other returns and taxes due April 15, including Form 1041, “U.S. Income Tax Return for Estates and Trusts,” and Form 1120, “U.S. Corporation Income Tax Return.”

Note also that the postponement is for federal individual income tax returns and payments. State and local rules may vary, and taxpayers should review the jurisdictions in which they are required to file and pay individual income taxes to ensure compliance with all state and local rules. 

Finally, the extension to May 17 does not affect the relief announced earlier this year for victims of the February winter storms in Texas, Oklahoma, and Louisiana. Residents of these states still have until June 15, 2021, to file various individual and business tax returns and make tax payments.

We will continue to monitor any state tax filing extensions and provide updates accordingly.

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