- IRS federal tax return deadline extension has caused major confusion for taxpayers
- What was due yesterday and what’s due on May 17?
Tax season is always bound to be a crazy time of year for accounting firms, but there was a lot of confusion yesterday, the usual deadline day of April 15, as to what was due and what had been extended.
The two biggest returns due yesterday were year-end trusts (Form 1041) and corporate (Form 1120) returns. Also due were first-quarter estimated tax payments— and that’s where a lot of the confusion happened.
Estimated payments are made by taxpayers who do not withhold their taxes; thus, they make four quarterly payments on their taxes throughout the fiscal year. First-quarter payments this year remained due on April 15, despite tax returns being due on May 17.
“They hear Tax Day is moved to May 17, so a lot of people will go to their preparer on April 30. Unfortunately, the first-quarter estimated payment is late.” Mark Stewart, president of the National Conference of CPA Practitioners, said.
So, even taxpayers who received an extension to file (which extends your return filing date to October 15, 2021) were still required to file by April 15 if they had estimates to pay. Fortunately, the vast majority of taxpayers withhold taxes, and only about 10 million individuals file with estimated taxes.
In the meantime, keep your eyes peeled for updates as we approach the 30-day mark for May 17 and sprint down the final stretch of this year’s long and confusing tax season.
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