October Extended Due Date Just Around the Corner

• October 15 is the extended due date for filing federal individual tax returns for 2020.
• Learn about late-filing penalties.
• Find out how much interest accrues on tax due.
• Discover other October 15 deadlines.

The IRS extended the normal April 15, 2021 filing deadline for 2020 individual tax returns to May 17, 2021, due to the continuing Covid-19 pandemic. If you could not complete your 2020 tax return by May 17 and are now on extension, that extension expires on October 15, 2021. Failure to file before the extension period runs out can subject you to late-filing penalties.

There are no additional extensions (except in designated disaster areas). So, if you still do not or will not have all of the information needed to complete your return by the extended due date, please contact your Fiducial representative so that we can explore your options for meeting your October 15 filing deadline.

Waiting for a K-1 from a partnership, S-corporation, or fiduciary return? The extended deadline for those returns is September 15 (September 30 for fiduciary returns). So, you should probably make inquiries if you have not received that information yet.

Miss the due date? Get ready for late penalties.

Late-filed individual federal returns can incur a penalty of 5% of the tax due for each month, or part of a month, for which a return is not filed, up to a maximum of 25% of the tax due. Required to file a state return? If you do not do so, the state will also charge a late-file penalty. The filing extension deadline for individual returns is also October 15 for most states.

In addition, interest continues to accrue on any balance due, currently at the rate of 3% per year. This rate is subject to adjustment quarterly.

Is Fiducial waiting for some missing information to complete your return? We will need that information at least a week before the October 15 extended due date. Please call your Fiducial representative immediately if you anticipate complications related to providing the needed information. Then, we can determine a course of action to avoid the potential penalties.

Additional October 15, 2021 Deadlines

In addition to being the final deadline to timely file 2020 individual returns on extension, October 15 is also the deadline for the following actions:

• FBAR Filings – Taxpayers with foreign financial accounts, the aggregate value of which exceeded $10,000 at any time during 2020, must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). The original due date for the 2020 report was April 15. However, individuals have been granted an automatic extension to file until October 15, 2021.
• SEP-IRAs – October 15, 2021 is the deadline for a self-employed individual to set up and contribute to an SEP-IRA for 2020. The deadline for contributions to traditional and Roth IRAs for 2020 was May 17, 2021. Usually, the deadline is April 15 for IRA contributions for the prior year. However, for 2020 contributions it was extended a month because of the Covid-19 crisis. May 15 was a Saturday, so the due date was the next business day, the 17th.
• Special Note – Disaster Victims – Do you reside in a Presidentially declared disaster area? Then the IRS provides additional time to file various returns and make payments.

Need help with an extended due date for other types of filings and payments or for extended filing dates in disaster areas? Call Fiducial at 1-866-FIDUCIAL or make an appointment at one of our office locations to discuss your situation.

Ready to book an appointment now? Click here. Know someone who might need our services? We love referrals!

For more small business COVID-19 resources, visit Fiducial’s Coronavirus Update Center to find information on SBA loans, tax updates, the Paycheck Protection Program, paid sick and family leave.