Federal Income Tax Filing and Payment Due Dates for Individuals for the 2020 Tax Year: On March 17, 2021, the Treasury Department and the Internal Revenue Service announced that the federal income tax filing and payment due dates for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The 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. Please note, however, that the postponement does not apply to estimated tax payments that are due on April 15, 2021.
Federal Income Tax Filing and Payment Due Dates for Texas for Individual and Business Tax Returns for the 2020 Tax Year: Additionally, earlier this year, the IRS announced relief for victims of the February winter storms in Texas, Oklahoma and Louisiana. These states have until June 15, 2021, to file various individual and business tax returns and make tax payments. Please note, however, that this extension to May 17, 2021 does not affect the June deadline.
Texas Franchise Tax Reports is Automatically Extended from May 15, 2021 to June 15, 2021: Finally, the Texas Comptroller of Public Accounts has announced that the due date for 2021 Texas Franchise Tax Reports is automatically extended from May 15, 2021 to June 15, 2021. The extension is in response to the recent winter storm and power outages in the state, and aligns the agency with the Internal Revenue Service, which extended the April 15, 2021 tax filing and payment deadline to June 15, 2021 for all Texas residents and businesses. Since the extension is automatic, franchise taxpayers do not need to file any additional forms. Franchise taxpayers who need an extension beyond the June 15, 2021 deadline have the following options. Non-electronic funds transfer (non-EFT) taxpayers who cannot file by June 15, 2021 can file an extension request on or before June 15, 2021. Such taxpayers must pay 90% of the tax due for the current year, or 100% of the tax reported as due for the prior year, with the extension request. Non-EFT taxpayers who request an extension have until November 15, 2021 to file their reports and pay the remainder of the tax due. Mandatory EFT taxpayers who cannot file by June 15, 2021 can file an extension request on or before June 15, 2021. They must pay 90% of the tax due for the current year, or 100% of the tax reported as due for the prior year, with the extension request. Mandatory EFT taxpayers who request an extension have until August 15 to file their report. However, on or before August 15, EFT taxpayers can request a second extension of time to file their report and must pay the remainder of any tax due with their extension request. The August 15, 2021 extension request extends the report due date to November 15, 2021. Please note that any payments made after August 15, 2021 will be subject to penalty and interest.
Frank L. Leffingwell is a tax attorney in the firm’s Tax Planning & Controversy, Estate Planning & Trusts, and Real Estate practice groups.