Keep These 2 Things In Mind As October 15th Approaches

Fall is upon us, the air is crisp, pumpkins are filling our porches (and lattes), and once again we are talking about taxes. Yep, it’s October. I know what you’re thinking, you just said it’s October, tax day is in April - what taxes are due in October? 

If that question is running through your mind, you’re not alone. The good news is (in most cases) no taxes are due. Federal taxes for individual filers (including business owners that need to report income from pass-through entities such as LLCs) were due May 17th, 2021. However, if you were not able to complete your return, and were granted an extension to file past April 15th, (or May 17th in the case of 2021) the deadline to submit 2020 federal individual and corporate income tax returns is October 15th, 2021.

Here are two key details to be aware of regarding the Oct. 15 extension:

Federal Income Tax

The past few years have been abnormal, to say the least - 2020 and 2021 both saw our individual income tax deadline extended, to July 15th and May 17th respectively. Regardless of that change, however, the Federal extension due date remains October 15th! 

Why this may be confusing: The instructions for the federal individual tax return, form 1040 say: "You can get an automatic 6-month extension if, no later than the date your return is due, you file form 4868"

The date to file federal individual income taxes is usually April 15th, with a six-month extension available, making the extended due date October 15th. Well, in 2021, the date was changed from April 15th to May 17th. It would be perfectly reasonable to think, my return was due May 17th, therefore my extension must now be November 15th, 2021, right? While adding 6 months to the May deadline technically makes sense, the federal extension date remains unchanged. Clear as mud? We thought so. And, as always, there are exceptions to the rule. Yay. The IRS says:

"Although October 15 is the last day for most people to file, some taxpayers may have more time. They include:

• Members of the military and others serving in a combat zone. They typically have 180 days after they leave the combat zone to file returns and pay any taxes due.
• Taxpayers in federally declared disaster areas who already had valid extensions. For details, see the disaster relief page on IRS.gov."

State Income tax

Filing extensions are also available for state income taxes, however, while some states follow the federal extension timeframe, others implement their own. If you are unsure about your state’s income tax extension deadline, it’s worth a visit to their Department of Revenue or Tax Collector’s website. 

Bottom Line

While taxes are certain, their due dates no longer are. We want to help you and your business to thrive, and part of that involves helping you stay up to date with evolving tax codes and fluctuating deadlines.