The tax deadline has been extended for the second year in a row, giving taxpayers some extra time to file those returns. The IRS and the Massachusetts Department of Revenue announced last week that the income tax filing deadline for individual 2020 tax returns and payments has been extended from April 15, 2021 to May 17, 2021.
While this extension provides an additional month to file and pay any remaining tax liabilities for 2020, it only partially addresses certain tax obligations.
At this point, the extension does not apply to the following tax filings, payments, and contributions and are still due by April 15, 2021:
- 1st quarter estimated tax payments
- Trust income tax payments and return filings on Form 1041
- Corporate income tax payments and return filings on various Forms 1120
- Individual retirement account (IRA) contributions
Most quarterly tax payments are based on safe harbor calculations using prior year tax liability; therefore, the benefit of postponement may be null for some. We can, of course, strive to come up with an estimate based on prior year income.
We understand that for many people filing a tax return this year may be more complicated than in years past due to the host of changes that occurred in 2020. If you plan to extend your return, please let us know, and we will complete it in a timely manner between April and October as similar to prior years.
As we continue to operate in a fluid tax environment, we’ll be sure to keep you updated on ongoing federal and state changes when they become available.
If you have any questions, please don’t hesitate to contact us at (781) 247-5569. We’re happy to discuss the best possible tax scenario for your situation.
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About Stu: With more than 30 years of experience as a tax professional, Stu Steinberg brings a broad depth of knowledge to his work with his clients. Stu founded Erock Tax to help provide tax and financial planning strategies to individuals, families and small businesses and is passionate about empowering his clients through education about their money health. Stu is highly energetic and brings a sense of optimism, creative problem-solving and a deep level of commitment to every Erock client.