April 15 is well-known in the United States. Some may look on this day with frustration, others with excitement. The outlook may hinge on whether the person is looking at a large tax bill or a refund. Although Tax Day itself still came and left, the coronavirus pandemic has led to some changes.
Most notable, the Internal Revenue Service (IRS) noted that many taxpayers were unable to get everything in order to meet this deadline. As a result, it extended the deadline passed the usual April 15th date. Instead, the IRS gave individuals until May 17, 2021. The extension is generally automatic, so if you missed the filing date earlier this week, do not get too stressed out.
Which deadlines did the IRS change?
April 15th is more than just the day the IRS expects individuals to file and pay their tax bill. It is also generally the deadline for IRA contributions, contributions to health savings accounts, and claims for certain tax refunds.
These are also extended an additional month.
It is important to note that the agency did not extend the estimated tax payment. This is still due on April 15.
What if I cannot afford my tax bill?
Those who find they owe the IRS, or their local state tax authority may find it difficult to make the payment — even with the extended deadline. It is important not to ignore this bill. It will not go away and a failure to deal with it can result in serious penalties that just make the problem even worse.
Instead, consider various payment options. The IRS offers many different payment options, such as an installment agreement or a settlement, referred to as offer in compromise. Each comes with specific requirements.