On March 17th, 2021, the Treasury Department and Internal Revenue Service (IRS) announced that the personal income tax deadline for filing, as well as for the payment of any U.S. personal Federal income taxes owing relating to the 2020 tax year, has been postponed from April 15th to May 17th, 2021. This tax measure represents an automatic extension and does not require any action on the part of the U.S. individual taxpayer. If additional time is required beyond May 17th, Form 4868 will need to be filed (to extend the deadline to October 15th). The Report of Foreign Bank and Financial Accounts (FBAR) deadline has not changed. However, all U.S. personal taxpayers automatically receive a 6 month extension, which effectively makes the filing due date October 15th. This personal income tax relief measure does not apply to estimated tax payments due on April 15th, 2021.
Twenty six states (as of March 22nd) have agreed to conform to the new U.S. Federal May 17th personal income tax deadline. In addition to those states, eight do not impose a personal income tax; thus, do not have a personal income tax deadline. The IRS urges taxpayers to check with their state agencies to ensure their State taxes are paid on time.
Since the Canada Revenue Agency (CRA) has not extended the Canadian personal income tax deadline, any Canadian taxpayer with U.S. income may still need to prepare their U.S. return in conjunction with their Canadian personal income tax return. Thus, we advise Canadian individual taxpayers with U.S. personal income tax filing requirements still strive to complete their personal income tax returns by April 15th. This approach to cross border personal income tax compliance will help ensure accurate and timely calculation of all foreign tax credits. If you have any questions about your U.S. personal income tax return, please reach out to your Bateman MacKay LLP Business and Tax Advisor.
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