IRS Issues Guidance on Tax Deadline Postponement

March 30, 2021

The IRS recently issued Notice 2021-21 providing details on its postponement of the April 15 tax deadline for individuals to May 17, 2021. The notice states that the postponement does not apply to any other type of taxpayer or federal tax return and reiterates that the April 15, 2021 due date for estimated income tax payments has not been extended.

The IRS states in the notice that the postponement applies to any individual who files a federal individual income tax return on Form 1040, 1040-SR, 1040-NR, 1040-PR, 1040-SS, or 1040(SP) (the Form 1040 series) or has a federal tax payment reported on one of these forms that would otherwise be due April 15, 2021. It also applies to all schedules, returns and other forms filed as attachments to forms in the Form 1040 series or that are required to be filed by the series due date. Elections that are made or required to be made on a timely filed form or attachment in the Form 1040 series will be considered timely if filed on or before May 17, 2021.

The notice also automatically postpones to May 17 the time for taxpayers to make 2020 contributions to their individual retirement accounts, health savings accounts, Archer Medical Savings Accounts and Coverdell education savings accounts. The postponement also applies to the time for reporting payment of the 10 percent additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans.

The notice also postpones the due date for individuals required to file and furnish Form 5498, IRA Contribution Information; Form 5498-ESA, Coverdell ESA Contribution Information; or Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, (the Form 5498 series) from June 1, 2021 to June 30, 2021.

In addition, the notice extends the postponement to claims for credit or refund of federal income tax that absent the notice would expire on or after April 15, 2021 and before May 17, 2021.

Taxpayers do not have to file a form to obtain relief under the notice. The IRS will disregard the period beginning April 15, 2021 and ending on May 17, 2021 in calculating any interest, penalty or addition to tax for failure to file federal income tax returns or to pay federal income taxes postponed by the notice.