BREAKING NEWS: Tax Deadline to Submit 2020 Tax Returns is Moving to May 17
It comes as no surprise that the Internal Revenue Service (IRS) and the Treasury Department have moved the deadline for filing 2020 federal income tax returns from April 15 to May 17. The IRS said that it will provide guidance in the coming days. The change in deadline comes after the IRS is still backlogged in processing 24 million tax filings from individuals and business since the 2019 tax year, the limited in-person appointments for tax preparation due to COVID-19, and the delay of the start of tax season this year from its usual late January start to February 12.
It is important to note that if an individual needs more time past the May 17 deadline, they have the option to file an extension that will delay their filing due date. “Never before has the law changed so substantially in the middle of tax filing season," Patrick Thomas, director of Notre Dame Law School’s Tax Clinic, said in an interview with USA Today.
At this moment, the move of deadline does not affect businesses. It is important that businesses continue to communicate with their accountants, that they gather all tax return information, and that they stay ahead of the deadlines. As a reminder, tax due dates for partnerships and S-Corporations was on March 15, 2021; and sole proprietors and C-Corporations are due on April 15, 2021.
2021 will be an important year for small businesses in regards to filing taxes. There are credits and incentives that can offset some of the losses that affected your business due to the pandemic, we want to make sure you take advantage of all the credits available to you and your business. It is important to remember that there are tax credits for Payment Protection Program (PPP) borrowers, employee retention tax credit, and Families First Coronavirus Response Act (FFCRA) tax credits for eligible businesses. These tax credits also have specific guidelines for eligibility.
We are looking at another uncharacteristic tax season. For tax year 2020, there are many factors to examine such as: programs for COVID-19 relief, new guidelines to follow, and tax rules to apply. Allow us to ensure that you have everything covered, please call us/message us and allow us to take care of your business this tax season.