Earlier today, the Internal Revenue Service (IRS) announced that the 2020 federal tax filing deadline for individual returns has been extended to Monday, May 17, 2021. This decision comes after pressure from The American Institute of CPAs and several representatives on the House Ways and Means Committee to provide taxpayers more time to navigate the new legislation aimed at providing tax relief, as well as to provide the IRS additional breathing room to work through service and processing backlogs.
This deadline extension also means that individual taxpayers have until May 17, 2021 to pay their 2020 federal taxes due without additional penalty. It is important to note, however, that the extension does not apply to first quarter 2021 estimated tax payments, which remain due by April 15, 2021.
Until additional formal guidance is released by the IRS, the deadline for filing other tax returns that are due on April 15, such as C corporations, trusts, and gifts, has not changed. Also, it remains to be seen whether individual states will follow suit with the May 17th extension, so, for now, plan to file your state income tax returns by the original deadline. We will keep you posted it either of these situations change.
Our firm plans to proceed with business as usual, striving to meet the original April 15th deadline. To that end, we intend to keep and maintain our internal individual and group performance goals in place as if April 15th were still the original deadline, so that work can be completed without modifying firm or client expectations.
We urge you to speak to your Price Kong advisor and provide tax information sooner rather than later. Each client’s situation will be evaluated and the appropriate course of action provided to ensure a smooth tax filing process.
As always, we are here to assist. Please contact us with questions at 602.776.6300.
Price Kong was established in Phoenix in 1967. Since then, our team has grown to 50 professionals and includes seventeen CPAs. The depth of our audit and tax practices allows us to provide services to clients in numerous industries, of a wide-range of sizes, and with revenues ranging from $1 million to over $500 million.
Price Kong is committed to providing personalized service and advice to our clients. Our full range of accounting and consulting services enables us to assist clients with understanding unique situation and ensure they receive expert support, regardless of the engagement or project. Price Kong is a member of Allinial Global, a consortium of 90 North American Certified Public Accounting firms, and numerous professional and industry organizations.