News & Tech Tips

Ohio Postpones Tax Filing Deadline to 5/17, Tax Conformity Passes

Kathleen Hargrove on March 25, 2021

OHIO TAX DEADLINE EXTENDED

 

Ohio Tax Commissioner Jeff McClain announced Wednesday that Ohio will be following the federal government and the IRS in extending the deadline to file and pay Ohio individual income and school district income taxes for tax year 2020.

 

The new deadline is May 17, an extension of approximately one month from the original deadline of April 15. The extension is intended to provide some relief to individuals impacted by the public safety measures adopted to contain the spread of the coronavirus.

 

As with the IRS extension, Ohio will be waiving penalty on tax due payments made during the extension. Also, as part of legislation passed addressing the continuing emergency, there will be no interest charges on payments made during the extension.

 

The filing extension, and waiver of penalty and interest, will be available to those filing Ohio individual income tax, and the school district income tax for tax year 2020.

 

In addition, the city of Columbus has also announced that they have extended their deadline to May 17 to align with the Federal and Ohio deadlines. It is expected that many cities and local jurisdictions will follow suit.

 

Please note that the first quarter estimated income tax payment for tax year 2021 is not impacted by this extension and must still be made by April 15.

 

 

TAX CONFORMITY PASSES

 

The final version of Senate Bill 18 has been passed by the Ohio House and Senate and now awaits Governor DeWine’s signature. It would conform Ohio with recent changes to federal tax law, including deductibility of expenses from the Paycheck Protection Program and excluding $10,200 in unemployment compensation from income tax.

 

Ohio-specific provisions in S.B. 18 will exclude the 2020 Ohio Bureau of Workers’ Compensation refunds/dividends from CAT; reduce pass-through entity withholding rates and exclude PPP second-draw loans from CAT.

 

The Ohio Legislative Service Commission published this analysis of the bill.

 

Because S.B. 18 is emergency legislation, the changes will be enacted into law immediately upon the Governor’s signature.

 

 

SOURCES: Ohio Department of Taxation, Ohio Society of CPAs

IRS Extends Filing and Payment Deadline

Kathleen Hargrove on March 18, 2021

The Treasury Department and IRS announced Wednesday 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.

 

The IRS states that they will be providing formal guidance in the coming days.

 

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. 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.

 

Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

 

If you need additional time to file beyond the May 17 deadline, please work with your Whalen advisor to request a filing extension until October 15.

 

The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.

 

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments.

 

 

State Tax Returns:

 

The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax.

 

State filing and payment deadlines vary and are not always the same as the federal filing deadline.

 

Currently, the state of Ohio has not announced an extension and still lists their due date as April 15, 2021. We will keep you informed if Ohio and other states follow suit with this extension and notify you as that information becomes available.

 

 

For more information or further assistance with your filing, please contact your Whalen advisor.

 

 

SOURCE: IRS.gov

Balance Due Notice Mailings: Due Dates Extended to Help Taxpayers

Kathleen Hargrove on June 17, 2020

Due to the COVID-19 pandemic, the IRS was unable to mail some previously printed balance due notices as a result of office closures. As IRS operations continue to reopen, these notices will be delivered to taxpayers in the next few weeks.

 

Some of the notices may reflect due dates that have already passed. The IRS assures taxpayers the due dates have been extended to July 10 or July 15, 2020, depending on the type of tax payment and original due date. The correct due date will appear on an additional insert mailed with each notice. Taxpayers who have questions can call the number provided on their notice.

 

For more information, go to IRS.gov: IRS operations during COVID-19 mission critical functions continue.

IRS provides penalty relief to certain late filers

mnarog on April 9, 2013

On March 20, the IRS issued guidance providing penalty relief to both individual and business taxpayers who file for an extension of their 2012 tax return and ultimately owe additional tax — but only if they meet certain criteria. First, the reason for filing for the extension must be that the taxpayer’s 2012 return involved forms whose publication was delayed because of the American Taxpayer Relief Act of 2012 (ATRA), signed into law Jan. 2. Here’s a sampling of the delayed forms:

  • Form 8839: Qualified Adoption Expenses
  • Form 8863: Education Credits
  • Form 3800: General Business Credit
  • Form 5884: Work Opportunity Credit
  • Form 6765: Credit for Increasing Research Activities
  • Form 8844: Empowerment Zone Employment Credit
  • Form 8874: New Markets Credit

In addition, the taxpayer must make a good faith effort when filing for the extension to properly estimate the tax liability. Then that estimated amount must be paid by the return’s original due date, and any additional tax owed must be paid by the return’s extended due date.

If you’re considering filing for an extension due to delayed IRS forms, please contact us to help ensure you’ll qualify for penalty relief.

Whalen CPAs
250 W. Old Wilson Bridge Rd., Suite 300
Worthington, OH 43085-2215
(614) 396-4200

© 2024 Whalen CPAs. All Rights Reserved.

The content provided on whalencpa.com is intended for informational purposes only. Before any action is taken based on this information, personalized advice should be obtained from a Whalen CPAs professional. Information obtained on whalencpa.com does not constitute professional advice or create a professional relationship with Whalen CPAs. Learn more.