For the best interests of our clients, Mann & Associates intends to proceed with the 4/15/21 filing deadline, with only a few exceptions. The extension to 5/17/21 does not help if the due date for estimated tax payments is not changed. Individual taxpayers who need additional time to file beyond the 5/17/21 deadline can request a filing extension. As of now, California tax law conforms to the Internal Revenue Code (IRC).
   
As of 3/17/21, the Federal deadlines are as follows:
               5/17/21 - Individual filers and payments due on 2020 tax returns
               4/15/21 - corporations and trusts
               4/15/21 - estimated tax payments on all entities, including individuals.

IRS Commissioner Chuck Rettig said, "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."

Please be advised that there is significant pressure from the AICPA (American Institute of Certified Public Accountants) and Congress to change the due date to 6/15/21 or have the estimated tax payments coincide with the filing 5/17/21 deadline for individuals. Since we have no idea if this will happen, we must proceed with what we know.

With some guidance from the IRS, we hope California will soon finalize AB 80 allowing us to finalize all business returns that took advantage of PPP loans.

We appreciate all our clients and your continued patience as we navigate this challenging year. Please understand our high call and email volume. We may not be able to speak to you, but we will do our best to respond promptly.  

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.

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.