Here are a few filing date reminders for you to keep in mind!
Remember, the normal April 15, 2021 filing deadline for 2020 individual tax returns was extended by the IRS to May 17, 2021 due to the continuing Covid-19 pandemic. If you could not complete your 2020 tax return by May 17 and are now on extension, that extension expires on October 15, 2021. Failure to file before the extension period runs out can subject you to late-filing penalties.
There are no additional extensions (except in designated disaster areas), so if you still do not or will not have all of the information needed to complete your return by the extended due date, please call this office so that we can explore your options for meeting your October 15 filing deadline.
If you are waiting for a K-1 from a partnership, S-corporation, or fiduciary return, the extended deadline for those returns is September 15 (September 30 for fiduciary returns). So, you should probably make inquiries if you have not received that information yet.
Late-filed individual federal returns are subject to a penalty of 5% of the tax due for each month, or part of a month, for which a return is not filed, up to a maximum of 25% of the tax due. If you are required to file a state return and do not do so, the state will also charge a late-file penalty. The filing extension deadline for individual returns is also October 15 for most states.
In addition, interest continues to accrue on any balance due, currently at the rate of 3% per year. This rate is subject to adjustment quarterly.
If this office is waiting for some missing information to complete your return, we will need that information at least a week before the October 15 due date. Please call this office immediately if you anticipate complications related to providing the needed information, so that a course of action may be determined to avoid the potential penalties.
Additional October 15, 2021 Deadlines – In addition to being the final deadline to timely file 2020 individual returns on extension, October 15 is also the deadline for the following actions:
- FBAR Filings – Taxpayers with foreign financial accounts, the aggregate value of which exceeded $10,000 at any time during 2020, must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). The original due date for the 2020 report was April 15, but individuals have been granted an automatic extension to file until October 15, 2021.
- SEP-IRAs – October 15, 2021 is the deadline for a self-employed individual to set up and contribute to a SEP-IRA for 2020. The deadline for contributions to traditional and Roth IRAs for 2020 was May 17, 2021. Usually the deadline is April 15 for IRA contributions for the prior year, but for 2020 contributions it was extended a month because of the Covid-19 crisis. May 15 was a Saturday, so the due date was the next business day, the 17th.
- Special Note – Disaster Victims – If you reside in a Presidentially declared disaster area, the IRS provides additional time to file various returns and make payments. Please call us for extended due dates of other types of filings and payments and for extended filing dates in disaster areas.
October 2021 Individual Due Dates
October 12 – Report Tips to Employer
If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.
October 15 – Taxpayers with Foreign Financial Interests
If you received an automatic 6-month extension of time to report your 2020 foreign financial accounts to the Department of the Treasury, this is the due date for Form FinCEN 114.
October 15 – Individuals
If you requested an automatic 6-month extension to file your income tax return for 2020, file Form 1040 and pay any tax, interest, and penalties due.
October 15 – SEP IRA & Keogh Contributions
Last day to contribute to a SEP or Keogh retirement plan for the calendar year 2020 if the tax return is on extension through October 15.
October 2021 Business Due Dates
October 15 – Corporations
File a 2020 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension by April 15.
October 15 – Social Security, Medicare and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in September.
October 15 – Nonpayroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in September. If you have any further questions or concerns about your specific circumstances, don’t hesitate to give us a call!
P.S. Want to spend less time guessing what the IRS needs? We can take the pop out of the pop quiz, schedule your free consultation with one of our partners today and make sure you’re prepared.