Federal Due Date for Individual Returns Extended

Last evening, the Treasury Department and the Internal Revenue Service extended the federal due date and payment date for individual returns from April 15 to May 17.

The extension does NOT apply to C corporations, tax exempt organizations, or any fiscal year entity due on April 15 or the payment of any other federal tax due on April 15.

The extension also does NOT apply to the 2021 first quarter estimated tax payment due April 15.

It is not clear whether this extension extends the Statute of Limitations on returns where it would have expired on April 15, 2021.

In addition, the extension does NOT apply to state and local individual tax returns. Each state and locality will need to decide whether to extend their deadline. Our State and Local Tax Practice group is monitoring the states and localities and we will send out updates as the states and localities decide what they are going to do.

This extension does not affect any taxpayers in Louisiana, Oklahoma, or Texas that qualify for the Winter Storm Disaster Relief extension to June 15.

As always, there are many unanswered questions and the IRS has stated that they will be issuing formal guidance in the coming days.

Once the IRS issues the formal guidance we will send out updates.