Tax Law Updates - Including COVID-19
Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline
The Treasury Department and Internal Revenue Service announced the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.
Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.
This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.
State tax returns
The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax.
Maryland - Comptroller Peter Franchot extended the state income tax filing deadline by three months until July 15, 2021. No interest or penalties will be assessed if returns are filed and taxes owed are paid by the new deadline.
The Consolidated Appropriations Act, 2021 (the CCA, 2021), signed into law on December 27, 2020 made changes for both individuals and businesses. View the links below for more information.
Changes and updates were made to the payroll tax credits. Please view the updates below to make sure you have the most recent information.
Payroll Tax Credit - Employee Retention Credit
Payroll Tax Credit - Employer Paid Sick Leave and Employee Family Medical Leave Act
There is a second round for the Paycheck Protection Program for eligible small businesses.
Paycheck Protection Program - 2nd Round
Maryland extended filing and payment deadlines for certain Maryland business taxes and quarterly estimated income tax returns and payments.
You are now eligible to voluntarily get an Identity Protection PIN with the IRS.
