Personal Income Tax Returns Now Due May 17


Last week the IRS extended the due date for personal income tax returns and balances due on them from April 15 to May 17.

As of today, many states, including Illinois, Indiana, and Wisconsin have also extended the time to file and pay balances due. Estimated taxes for the first quarter 2021 are still due by April 15.

The extension to file and pay balances due only applies to personal income tax returns.  It does not apply to C Corporations or trusts, which are also due on April 15. Partnerships and S Corporations were due on March 15 and have already been extended if they were not completed.

This comes as welcome news as this tax season is even more difficult than the last one. In the last 90 days, we have had two major tax acts with over 6,200 pages to analyze. In addition, there is the PPP second draw, and PPP forgiveness to administer. On top of that, there is the Employee Retention Credit that must be calculated for the first quarter for some.

Our revised priorities over the next few months are:

1.   Due April 15:

      a.    Determine the first quarter, 2021 estimated taxes that should be paid.

      b.    Finish or extend trust and C corporation income tax returns.

2.    Due April 30:

      a.    Identify qualifying clients and assist them with the Employee Retention Credit.

3.    Due May 17:

      a.    Prepare your personal income tax returns to get your refunds, or at least to get clarity on your tax situation.

      b.    Prepare Indiana personal property tax returns.

      c.    Assist nonprofit organizations with their required filings.

4.    Due May 31:

      a.    Help clients with the PPP second draw applications. Legislation passed by the Senate yesterday extended this deadline from March 31.

5.    Due July at the earliest:

      a.    Processing PPP forgiveness applications.

Due to the additional burdens placed on us during an already busy time, we still anticipate extending many of the tax returns we prepare. This will allow us the time necessary to ensure we get the greatest tax result for our clients. Thank you for your understanding during these difficult times.

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