Just The Tax: Another Extended Tax Deadline
For those of you who missed the news, the IRS (and the state of Oregon) has extended the filing deadline for individual tax returns from April 15, 2021 to May 17, 2021.
This applies to me if ...
You have traditionally filed your individual tax returns by the April 15 deadline … or if you want to ensure that you have funded your individual retirement account by the deadline.
What’s new?
Many of you recall that last year’s filing deadline for individual tax returns was extended from April 15, 2020 to July 15, 2020 due to the COVID-19 pandemic. This year, the IRS recently announced that it would extend the deadline by one month - to May 17, 2021.
For our individual clients who will owe taxes on the filing deadline, this means that you have an additional month to make your payment - without interest or penalty (presuming that you have otherwise made timely payments during 2020). Note that if you have already filed your 2020 tax return and have a balance due, you have until May 17 to make that payment.
Oregon has matched the IRS’ deadline - so your Oregon individual income tax return will also be due on May 17, 2021 as opposed to April 15, 2021.
For our clients who fund an Individual Retirement Account (IRA), the IRA contribution deadline is also extended to May 17th. This applies for individuals making 2020 contributions to their IRAs and Roth IRAs, health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs).
Similar to last year, the federal and state extended due date for individual tax returns remains the same - October 15, 2021.
Although we will prepare and file many of our individual clients in time for the May 17 deadline, as we have shared before, due to the nuances related to the recent stimulus legislation, there may be strategic reasons to extend your tax return or to ensure that it is filed on time. We are assessing the benefits of this determination for each of our individual clients.
Why should I care?
Like it or not, preparing and filing income taxes is deadline driven. There are many reasons that drive our clients to want to file their return as soon as possible. That said, there are just as many reason, if not more, to wait to ensure we have had time to analyze the effect of what are fundamental changes to tax law are on your personal situation - not to mention three massive rounds of stimulus legislation (a lot of which the IRS and Small Business Administration has yet to provide guidance on). We appreciate your patience as we work through these changes to ensure that you receive the best possible tax planning.
For more information
The IRS notice regarding the extension of the individual filing deadline can be found here.
The Oregon notice regarding the extension of the individual filing deadline can be found here.
How can we help?
If you have questions about the status of your individual tax return please let us know. Rest assured that we are working diligently to ensure that our clients needs are being met.
The fine print
We draft these Tax Tips to assist you. That said, they do not consist of tax advice nor are they intended to be a comprehensive summary of the tax law. If you have specific questions please let us know and we are always happy to assist you.