IRS Extends Individual Tax Deadline to May 17

The extension is to allow taxpayers additional time to navigate challenging financial circumstances related to COVID-19.

3/18/2021 8:00 AM

AdvocacyNewsCOVID-19
IRS Extends Individual Tax Deadline to May 17

After delaying the start of tax season to Feb. 12, the U.S. Treasury Department and Internal Revenue Service announced that 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, according to a news release. The IRS will be providing formal guidance in the coming days.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig in the news release. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

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, according to the IRS. 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.

Meanwhile, ACA members can take this time to inform consumers, staff, and clients of their options during tax season. This year, debt collectors should also consider extra hardships consumers may be facing due to the COVID-19 pandemic, but a friendly reminder about how their tax refund, if available, can be used to pay down debts can be helpful.

Here are a few tips for working with consumers during tax season:

  • Train your team on key tax filing dates and deadlines, including when consumers can begin filing and the IRS is expected to begin issuing payments, available here.
  • This information can be included on a tax-time staff fact sheet, which can also list the income threshold for free electronic filing at IRS.gov.
  • When speaking with consumers about tax refunds, keep communications positive and focus on finding solutions.

Many debt collection agencies encourage their collectors to bring up tax refunds during conversations with consumers. Try asking, “Are you expecting a tax refund this year?” or “Have you thought about using your tax refund to pay this?”

Read more tips on working with consumers during tax season in this Collector magazine article.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

IRS Extends Individual Tax Deadline to May 17

After delaying the start of tax season to Feb. 12, the U.S. Treasury Department and Internal Revenue Service announced that 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, according to a news release. The IRS will be providing formal guidance in the coming days.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig in the news release. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

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, according to the IRS. 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.

Meanwhile, ACA members can take this time to inform consumers, staff, and clients of their options during tax season. This year, debt collectors should also consider extra hardships consumers may be facing due to the COVID-19 pandemic, but a friendly reminder about how their tax refund, if available, can be used to pay down debts can be helpful.

Here are a few tips for working with consumers during tax season:

  • Train your team on key tax filing dates and deadlines, including when consumers can begin filing and the IRS is expected to begin issuing payments, available here.
  • This information can be included on a tax-time staff fact sheet, which can also list the income threshold for free electronic filing at IRS.gov.
  • When speaking with consumers about tax refunds, keep communications positive and focus on finding solutions.

Many debt collection agencies encourage their collectors to bring up tax refunds during conversations with consumers. Try asking, “Are you expecting a tax refund this year?” or “Have you thought about using your tax refund to pay this?”

Read more tips on working with consumers during tax season in this Collector magazine article.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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