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Friday, October 22, 2021

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Steven Gill Steven Gill
 


Extended Tax Filing Deadline: What You Need to Know

Accounting associate professor Steven Gill discusses details of the new July 15 filing date.
By SDSU News Team
 

On March 21, the U.S. Department of the Treasury and Internal Revenue Service announced this year’s federal income tax filing due date was extended from April 15 to July 15.

Taxpayers can also defer federal income tax payments due on April 15 to July 15, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

The SDSU News Team spoke with Steven Gill, an associate professor in the Charles W. Lamden School of Accountancy, to discuss the extended tax filing deadline and how refunds could be affected.

Do taxpayers still need to file their taxes?

Taxpayers still need to complete and file their individual income tax returns. The IRS has provided an extension to both file and pay taxes until July 15, 2020. The previous deadline was April 15, 2020. Normally, taxpayers would have been required to file a Form 4868 for an extension. Taxpayers will not be required to file a Form 4868 to extend until July 15, 2020.

Can taxpayers file an extension in addition to the July 15 deadline? 

No extension form is required to extend through July 15, 2020, but at this point, no guidance has been provided on a further extension. Taxpayers wishing to extend beyond July 15 should file a Form 4868.

Should taxpayers expect their refunds will be delayed? 

The IRS has not acknowledged any delays for tax refunds as a result of COVID-19 and expects that most taxpayers will receive their refund within 21 days of filing. Using electronic filing and direct deposit are steps you can take to speed the refund along.

Do you expect states will follow the lead of the federal government and delay their tax filing deadlines? 

Some states will follow. For example, California has already permitted a delay until June 15. Arizona, New York, Wisconsin, and Pennsylvania are extended through July 15. More states are likely to follow suit. You should confirm your state’s situation at the state tax authority website.

Do you foresee the tax filing deadline delay to have a significant impact on the U.S. economy?

The filing delay is not likely to create any particular impact on the U.S. economy. The delay in tax payments will force the U.S. Treasury to “float” some debt. The month of April is historically a big collection month for the IRS because of the April 15 payment deadline but also because first quarter estimated payments for 2020 are generally due (these have also been delayed until July 15).
  
Is there anything else U.S. citizens should be aware of regarding the tax filing deadline extension?

Although filing and payments are delayed until July 15, most taxpayers are in a position to receive a refund. For those taxpayers, assuming you can either self-prepare or can capably work with a tax professional, there is no reason to delay as it will also delay the receipt of your tax refund.