Small Business Taxes & Management^TM--Copyright 2021, A/N Group, Inc.

Filing Requirements Extended

As we reported a short time ago, the IRS has announced that individuals have until May 17, 2021 to meet certain deadlines that would normally fall on April 15, such as making IRA contributions and filing certain claims for refund. There is no need to file an extension for this extra month of time. Of course, if you need time beyond May 17, an extension will be required. The automatic extension of the filing deadline for Form 1040 series to May 17 also automatically postpones to that date the time for individuals to make 2020 contributions to the following:

• Individual Retirement Arrangements (IRAs and Roth IRAs)
  
• health savings accounts (HSAs)
  
• Archer Medical Savings Accounts (Archer MSAs)
  
• Coverdell education savings accounts (Coverdell ESAs)

If you maintain a SEP, the deadline for contributions is the same as the due date (including extensions) for the return.

Also included in the 1040 series extension are Schedule H and Schedule SE, Forms 965-A, 3520, 5329 (Additional Tax on Qualified Retirement Plan Distributions), 5471, 8621, 8858, 8865, 8915-E (Qualified 2020 Disaster Retirement Plan Distributions), and 8938. In addition, any elections required to be made on Form 1040 series will be timely made if filed on such form or attachment on or before May 17, 2021.

Also extended is the deadline for filing claims for refund or credit of federal income tax forms 1040 for 2017 tax returns (the three-year statute).

Filing Requirements Not Extended

But this automatic extension is different than last years'. The 2020 extension was much broader. Here are some filing deadlines not extended:

• First quarter estimated payments for individuals are still due on April 15, 2021
  
• Foreign bank and financial account holders must file FBAR
  
• Gift tax returns (Form 709) for 2020
  
• Form 1041, Estate and Trust Return for trusts
  
• Form 1041-ES estimated tax payment for trusts
  
• Form 1120 corporate tax returns (calendar year)
  
• Form 1120-W corporate estimated tax payments

If you want to extend a gift tax return the easiest way could be to file an extension (Form 4868) for your individual return and provide an estimate of the tax due. That will automatically extend the gift tax return.

Also not extended is the due date to remove excess salary deferrals from retirement accounts such as 401(k), SIMPLE IRA, etc. The excess deferrals, plus earnings, must be distributed by April 15.

Most states follow the federal, both as to what's extended and what isn't. For example, individual returns may be automatically extended, but not estimated tax payments or fiduciary (trust) returns. In addition, some individual returns that are not tied to the federal income, such as some New Hampshire interest and dividend returns and business profits returns, are not extended. To be on the safe side, check with your state.

--Last Update 04/09/21