Original Tax Deadline 2021
With many people struggling due to Covid restrictions, the federal government extended the tax deadline in 2021. The original due date of April 15th was altered to May 17th, giving another month to those in need. Meaning, there is no interest or late fees on 2020 taxes paid by May 17th. That month could prove crucial for many, who may have needed time to get funds together. Not to mention, there’s so much change happening at once it can difficult to keep up with basic routines. If you still haven’t filed or need another extension, it’s not too late!
October 15th Extension
While late fees and interest may be charged on amounts owed past May 17th, you can still e-file for an extension on 2020 tax refunds. Using the Form 4868, which should’ve been submitted by May 17th, you could get an extension until October 15th. That being said, here’s my advice if you owe and can’t fully pay off your taxes. Pay whatever amount you can now to avoid more interest. Then workout a payment plan with the IRS for the rest of the amount.
Adversely, if you still need to collect your refund there will be no interest or late fees charged if you file by the new tax deadline in 2021, October 15th. Lastly, if you didn’t file for an extension and still need to, you may be subject to a late filing fee. Do so before October 15th to avoid any additional expenses. The government is likely to be extra lenient this year, so you may even be able to request late fees to be waived. Here’s your last reminder to get on top of it now!