On March 17, the IRS and U.S. Treasury announced that the deadline for individual tax returns will change from April 15, 2021 to May 17, 2021. This new deadline is not as straightforward as it seems, as it ONLY refers to individual Form 1040.
Currently, all other April 15 federal deadlines are still in effect. This includes first quarter estimated tax payments, calendar year corporations, and estates & trusts. Any taxpayers who pay quarterly estimated payments should reach out to their tax advisor as it may be advantageous to extend.
The Tennessee Department of Revenue has followed the IRS’s lead and extended the Hall income Tax filing and payment deadline from April 15, 2021 to May 17, 2021. The extension will apply automatically, and no further action is needed. The May 17, 2021 extension also applies to the Tennessee franchise and excise tax for Single member LLC’s filing as an individual on the 1040.
Interest and late filing penalties will not apply to any Tennessee tax returns filed on or before the extended May 17 due date. April 15, 2021 is still the filing date for business that file the Tennessee Franchise and Excise Tax return.
The filing and payment deadline for individual income tax in Virginia has also been extended from May 1, 2021 to May 17, 2021. Despite the deadline extension, interest may still accrue on any tax payments received after April 15. According to a notice sent from the Governor’s office, legislation to address that issue will be considered in April so stay tuned.
The Virginia deadline extension does not apply to estimated payments which are currently due May 1, 2021.
What does this mean for your taxes?
Even if you are filing individual Form 1040 or state taxes that have been extended, you should still submit your tax documents as soon as possible. With new and changing tax laws, delayed start to the tax filing season, ongoing delays at the IRS, and other factors, additional tax planning and processing time will be necessary.
If you have circumstances that require an early filing, please let us know.
As always, we are committed to providing you with excellent, accurate, and timely service. We value our relationship with you, and we appreciate your patience as we navigate the unprecedented and unexpected demands of this tax season. We are working hard to meet the needs of all our clients.
We will continue to monitor the latest tax guidance and will keep you updated on any new information as it becomes available.