Great news! The IRS is once again changing its tax deadline. Much like last year, the ongoing COVID-19 pandemic disrupts life as we knew it before. The Internal Revenue Service has acted swiftly to ease the concerns of all taxpayers. Whether or not you run a business, this announcement is bound to be a relief for you.
Some Important Context
The usual tax deadline is on April 15 every year. That’s why it’s known as “Tax Day” because you must submit the taxes from the previous year by then. Due to how the coronavirus crisis has impacted society, there needed to be an extension. As such, the new deadline is now May 17 – roughly a month later. The delay also gives the IRS more time to prepare for the influx of documents they will need to process.
The Status of Unclaimed Refunds
Unclaimed refunds are also affected by this shakeup. You now have more time to claim refunds, up until May 17 of this year. Despite this change, taxpayers must address and mail the documentation. Then they must follow up to verify that their paperwork is postmarked by the new May due date.
The Fate of Filing Season Program
Anyone participating in the Annual Filing Season Program, or AFSP, has until May 17 to settle with the IRS. As with other tax-related matters, the original due date was in mid-April. Go to the IRS website and view Notice 2021-21 to see more information.
Tax Payment Predictions
So what does this all mean for your upcoming tax payments? After all, it could frustrate you if you have already filed your papers and received refund money alongside a stimulus check. Withheld and estimated tax payments remain unaffected by these updates.
Your Ultimate Takeaways
Despite what you may think, the IRS can only oversee and collect federal income taxes. State laws could vary, as each state has its own rules and regulations. However, it’s nothing to worry about – the May deadline should be valid for state income taxes as well.
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