Topline
The Internal Revenue Service said Thursday that some taxpayers will receive automatic extensions on their tax filing deadlines this year beyond the May 17 extended deadline, without the need to formally request extra time from the IRS—here’s what you need to know.
Key Facts
Victims of the winter storms that tore through Texas, Louisiana and Oklahoma this February have until June 15 to file their returns, pay any amount due, make a first estimated tax payment for 2021, and contribute to IRAs and certain other retirement plans.
That relief is available for those living in a federally declared disaster area that qualifies for a special FEMA program and also to people with a business or tax records in the disaster area.
U.S. citizens and resident aliens living and working overseas also have until June 15 to file their 2020 tax returns and pay any amount due.
Members of the military (along with those serving as support personnel) who are stationed in a combat zone have 180 days to file their taxes after they leave the zone.
Other taxpayers have the option to request an automatic filing extension until October 15 by submitting a Form 4868 to the IRS—but taxes owed for 2020 are due on May 17 or the underpaid amount may be subject to failure-to-pay penalty interest.
Big Number
16 million. That’s how many people will get an automatic extension this year, according to an IRS estimate.
Key Background
The IRS is facing delays and backlogs exacerbated by the pandemic and the extra burdens associated with sending out stimulus checks and coping with other emergency changes to the tax code. The agency is now holding roughly 29 million returns for manual processing, which means that those taxpayers will likely see their returns delayed.
Tangent
President Biden is seeking to help address service issues at the IRS—and the issue of tax avoidance by the ultra-wealthy and big corporations. To do that, he’s proposing sending an extra $80 billion to the agency over the course of ten years.
Further Reading
Here Are The Biggest Winners And Losers In Biden’s Individual Tax Plan (Forbes)
2 Million More $1,400 Stimulus Checks Issued This Week, Treasury Says (Forbes)
