Tax Filing Deadline Extended 30 Days, but…
This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.
Trust returns Form 1041 and Corporate returns Form 1120 are still due by April 15th!
“Americans, individuals and small businesses have been impacted immeasurably. The fact is virtually all aspects of the federal government and state and local governments have also been impacted. A fair assessment might conclude, for a variety of reasons, that the IRS has been affected more than other federal agencies. I believe taxpayers and practitioners understand this,” Melancon continued. “It is commendable that the IRS wants to demonstrate a return to normalcy. However, the IRS, through no fault of their employees, is seeing significant backlogs, inundated phone lines, unopened mail by the millions and systems sending out unwarranted notices. Extending all tax returns due to June 15th exhibits an understanding of the IRS’ impact on the American public.”AICPA President and CEO Barry Melancon, CPA, CGMA
Alabama provides for an automatic extension of up to six months to file Alabama income tax returns whenever there is a corresponding Federal extension. As a result, Alabama taxpayers will not need to request an extension to file the Alabama individual income tax returns without a late-filing penalty through the extended Federal due date.
Regarding the payments of Alabama income tax for the 2020 tax year, which are due on April 15, 2021, the Alabama Department of Revenue (ALDOR) will automatically waive, without request, late-payment penalties for payments remitted by May 17, 2021. However, ALDOR is not authorized to waive interest, and any interest accruing from April 15, 2021, through the actual payment date will be due. Therefore, ALDOR encourages taxpayers to make their payments for the 2020 tax year as soon as possible to avoid the accrual of interest beyond April 15.
Accredited Tax Advisor
News from Cook & Co. Tax Advisors at 124 South Main Street in Arab, Alabama. Greg Cook is an Enrolled Agent, licensed by the U.S. Treasury Department to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS). He is also a Certified Public Accountant licensed by the states of Alabama and Tennessee.