09 Apr IRS Extends Additional Tax Deadlines to May 17
Following the extension of the filing and payment deadline for individuals to May 17, 2021, the IRS announced other tax deadline extensions to the same date.
Here’s what’s affected:
Contributions to IRAs and health savings accounts
People now automatically have until May 17, 2021, to make 2020 contributions to their:
- Individual retirement arrangements
- Health savings accounts
- Archer medical savings accounts
- Coverdell education savings accounts
The deadline for reporting and paying the 10% additional tax on amounts included in gross income from 2020 distributions from IRAs or workplace-based retirement plans is now May 17, 2021. Lastly, the due date for Form 5498 series returns related to these accounts is now June 30, 2021,
2017 unclaimed refunds: The law provides a three-year window to claim a refund. Normally, April 15, 2021, is the deadline to claim a refund from tax year 2017 but, the IRS has extended it to May 17, 2021. To get the unclaimed refund, a taxpayer must properly address and mail the tax return, postmarked by May 17, 2021. If a taxpayer doesn’t file a return within three years, the money becomes property of the U.S. Treasury.
Foreign trusts and estates: Foreign trusts and estates with federal income tax filing or payment obligations, who file Form 1040-NR, now have until May 17, 2021.
2021 Annual Filing Season Program application deadline: Tax return preparers who’d like to participate in the Annual Filing Season Program for calendar year 2021 now have until May 17, 2021, to file their application with the IRS.
Tax professionals can learn more on the AFSP page on IRS.gov.
No extension for estimated tax payments: April 15, 2021 is still the deadline to make first quarter estimated tax payments. Withholding is automatic for most employees, but some taxpayers’ income isn’t subject to income tax withholding. These taxpayers must generally make quarterly estimated tax payments. Income that may require estimated tax payments includes:
- Self-employment
- Interest
- Dividends
- Alimony
- Rentals
Taxpayers should review IRS Notice 2021-21 for more information about these extensions.
Original content by the Internal Revenue Service. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.