June 19, 2024
Annapolis, US 69 F

IRS Extends Tax Deadline to May 17; Franchot Reminds Maryanders of State Deadline on July 15

Comptroller Peter Franchot is notifying taxpayers that the Internal Revenue Service (IRS) has extended the filing deadline for the 2020 tax year for federal individual income tax returns from April 15 to May 17, 2021. The federal extension does not apply to estimated tax payments due on April 15, 2021.

The IRS action follows Comptroller Franchot’s announcement last week to extend the filing deadline for 2020 state income tax returns by three months to July 15, 2021. The state extension applies to individual, pass-through, fiduciary and corporate income tax returns. No interest or penalties will be assessed if returns are filed and taxes owed are paid by the new deadline.

The federal filing extension would “help taxpayers navigate the unusual circumstances related to the pandemic,” and let the agency work on important tax administration responsibilities, IRS Commissioner Chuck Rettig said in an agency news release.

Individual taxpayers do not need to file any forms or contact the IRS to qualify for the federal extension; it will apply automatically for all taxpayers. As always, individual taxpayers who need additional time to file beyond the May 17 deadline can request a further extension until October 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

In Maryland, the Comptroller’s Office has processed more than 1.1 million returns this tax season with more than $700 million in refunds issued to more than 750,000 taxpayers.

The three-month extension for state income tax returns is due to recent state and federal legislation that impacts 2020 tax filings and provide economic relief for taxpayers harmed by the COVID19 pandemic.

In Maryland, passage of the RELIEF Act in February and veto overrides of legislation required extensive revisions to previously released tax forms and software programs. The third federal stimulus package, signed into law earlier this month by President Joe Biden, also necessitated changes to federal and state tax forms.

The American Rescue Plan provides additional Unemployment Insurance (UI) tax benefits, which require more updates to both state and federal forms. Taxpayers who intend to take advantage of state and federal UI subtractions are advised to wait until April 15, when all forms will be ready.

Marylanders can electronically file their state tax returns through the state’s free iFile system, which can be accessed online at www.marylandtaxes.gov.

Free state tax assistance is available virtually through all of the Comptroller’s 12 taxpayer service offices, Monday through Friday, 8:30 a.m. to 4:30 p.m. Virtual appointments can be made at www.marylandtaxes.gov. For more information on any tax-related matter, call 1-800-MD-TAXES (1-800-638-2937) or 410-260-7980 in Central Maryland from 8:30 a.m. to 7 p.m. Monday through Friday, or email [email protected].

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