CCH Software News - IRS Announces May 17, 2021 Deadline for Individual Returns using CCH® ProSystem fx® Tax

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  • Last Modified:
  • 03/20/2021

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CCH Software News - IRS Announces May 17, 2021 Deadline for Individual Returns

Dear CCH ProSystem fx Customer:

On Wednesday, March 17, 2021, the Treasury Department and Internal Revenue Service announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest, and additions, to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17, 2021.

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.

The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax payments (including tax on self-employment income) otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details.

Program reactions to the IRS announcement will occur with release 2020.03020 on Sunday, March 28, 2021. Until that release is available, you can change the references in the letters and filing instructions as noted below.

Not all states have not announced plans if they will follow the federal deadline. Options are available for altering those returns at the state level based on each state's guidance. Program reactions for states that announce conformity with the federal extension also will be available on Sunday, March 28, 2021.

Return — Federal, state, and city filing deadline overrides are available on General > Letters & Filing Instructions > General Letter (Interview Form 16, Boxes 50-52). To change the date for all taxing authorities, enter 5/17/21 in Payments/Penalties/Estimates > Penalties > Federal Late Payment Penalty and Interest > Date filed if not by due date (Interview Form T-3, Box 34).

Changes to electronic filing specifications have not been announced, however, returns will file correctly without further intervention. Direct debit cannot be used for delayed payments until the IRS and/or states revise the associated business rules. At this time, payment vouchers should be used to delay payment to May 17, 2021. Further information will be provided when it becomes available.

Note: Returns that have already been transmitted to the IRS cannot be revised. Payments set for April 15, 2021 withdrawal will be withdrawn on April 15, 2021. Intervention with the IRS or state is the only current recourse.

Additional information will be provided in the release notes with the release for March 28, 2021.

Sincerely,

Wolters Kluwer Tax & Accounting, North America If this email was forwarded to you, and you would like to subscribe to CCH Software News announcements, subscribe here.

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