650 NE Holladay Street,
The Liberty Centre, Suite 1500
Portland, OR 97232
The IRS has recognized just how difficult the past year has been for many people, so the agency will be providing taxpayers with a bit of breathing room this year. They are extending the tax filing deadline by about a month to May 17, 2021.
Accountants have been reaching out to the IRS to request a deadline extension due to challenges from the pandemic and continued delays from last year. Hopefully this will provide taxpayers with some relief as they work through their tax returns and get finances in order during an historically complicated tax season. There is no need to file any forms to qualify for the extension, and there are no penalties or interest on any taxes that are paid by May 17. This relief applies to individual taxpayers only, not to estimated tax payments due on April 15 (estimated tax payments are generally made quarterly by people whose income isn’t subject to income tax withholding).
The IRS emphasizes that the deadline delay applies to federal taxes only, and not necessarily to state income taxes. While it’s possible that some or all of the 42 states (and Washington D.C.) that charge an income tax may follow the IRS’ lead on the extended deadline, taxpayers should check with their state tax agencies for those details. The Oregon Department of Revenue announced on Thursday that Oregon has postponed its state income tax deadline to May 17 in alignment with the federal deadline.
For those making IRA contributions, this delay offers a bit of extra time to make additional contributions, as IRA contributions are tied to the federal filing date. Please contact our planning team if you would like to discuss this or other tax strategies or additional financial planning items.
You can read the full IRS statement at https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline