The IRS has a strict tax filing deadline, and defaulting can result in dire consequences. However, for the 2020 and 2021 tax seasons, the agency gave people more time to submit their returns. Will the 2021 tax deadline get extended again?
You’re required to submit your returns within months following the end of a tax year. Normally, the tax filing deadline is April 15. You might get an extension to submit your returns later up to Oct. 15 if you have a good reason.
Will the 2021 tax deadline get extended again?
The IRS has been lenient on the tax deadline since the COVID-19 pandemic struck. For example, it moved the deadline to file returns for the 2019 tax year to July 15, 2020, instead of April 15.
For the 2020 tax year, it gave people until May 17, 2021, to file their returns—that was more than a month later than the usual deadline. People in select states affected by storms got even more time to file their returns.
The IRS hasn’t announced a plan to extend the tax deadline for the 2021 tax year. However, it’s worth noting that the COVID-19 pandemic, which caused the tax deadline extension for the past two years, has persisted. We'll have to see if the IRS extends the tax deadline again.
Although the agency said that it wouldn’t give people extra time to submit their tax returns in 2021 for the 2020 tax year, it extended the deadline anyway. Anything is possible before the next tax deadline comes.
When do we file taxes in 2022?
Assuming that the IRS doesn’t extend the 2021 tax deadline, you will be required to submit your returns by April 15, 2022, for the 2021 tax year. You can file your returns as early as January. Online filing usually works best for those expecting a tax refund. Considering that the situation is still fluid with the COVID-19 delta variant wreaking havoc in the U.S., it’s important to watch for IRS updates on the tax filing dates in 2022.
What happens if I miss a tax deadline?
If you don't file your tax returns by the deadline, there's a chance that you might be fine or you could pay dearly. For those on employment, a percentage of your wage is automatically deducted and sent to the IRS to cover taxes. Those in business are also required to pay a percentage of their income to the IRS as tax.
Whether you're employed or own a business, you might end up paying more to the IRS than required. In that case, you might be eligible for a tax refund. If a refund is due, nothing happens to you even if you file returns after the tax deadline. However, if no tax refund is due to you and you missed the filing deadline, the IRS will usually hit you with penalties and charge interest on the unpaid tax amount. The penalty can be as high as 25 percent of the tax due.
If you missed the filing deadline and you owe the IRS, try to submit the returns as soon as you can. Also, pay the tax amount you owe as soon as possible. That way you can minimize the penalties and interest.