Taxes Due May 17th Do you need to file a tax extension?

The 2021 tax due date is May 17. If you have not filed yet you can apply for an automatic extension (and pay an estimate of the taxes owed). The next tax due date is October 15th if you have filed your extension.

Caution should be exercised when preparing the extension application, as the extension is automatically granted only if it includes a reasonable estimate of the 2020 tax liability and only if that anticipated liability is paid along with the extension voucher. It is not uncommon for taxpayers to enter zero as the estimated tax liability without figuring the actual estimated amount. These taxpayers risk the IRS classifying their forms as having been improperly completed, which in turn makes the extensions invalid. If you need an extension, please contact this office so that we can prepare a valid extension for you.

The extension must be filed in a timely manner; at this office, we can file your extension electronically before the due date. If you are mailing an extension, be advised that the envelope with the extension form must be postmarked on or before the May 17th due date. However, there are inherent risks associated with dropping an extension form in a mailbox; for instance, the envelope might not be postmarked in a timely fashion. Thus, those who have estimated tax due should mail their extension forms using registered or certified mail so as not to risk late-filing penalties.

In addition, the May 17 deadline also applies to the following:

• Balance-Due Payments for the 2020 Tax Year

• Contributions to a Roth or Traditional IRA for the 2020 Tax Year

• Individual Estimated Tax Payments for the First Quarter of 2021

• Individual Refund Claims for the 2017 Tax Year

Keep in mind that the last week of tax season is very hectic, and your returns may not be completed in time if you wait until the last minute. If you know that the missing information will not be available before the May 17 deadline, then please let us know right away so that we can prepare an extension request.

If you have not yet completed your returns, please call this office right away so that we can schedule an appointment and/or file an extension.