It’s just human nature. Offer people more time to do something, and they’ll take it.

The IRS announced this week it is extending the tax deadline from April 15 to May 17. Listed below are some significant reasons why you shouldn’t wait to file your taxes on May 17.

• The IRS has not extended the deadline to pay estimated taxes. That due date for the first quarter of 2021 is still April 15. If you don’t pay enough tax, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.
• The earlier you file your taxes, the sooner you’ll get your tax refund. If you happen to owe with your return, you will have additional time to pay it. Although you filed your return, the payment will not be due until May 17.
• If you haven’t received your stimulus payment for the first or second round of coronavirus-related relief, you can apply for those funds on the 2020 return. Since any missing stimulus check money is also tied to your tax return this time around, filing early will mean you get any missing stimulus money faster, too. If you’re owed a tax refund and stimulus money, both will arrive as part of the same payment. The IRS is basing your third stimulus payment on your 2019 or 2020 taxes.
• The chance to set up direct deposit with the IRS or fix any errors. People with direct deposit accounts on file with the IRS have typically received their stimulus payments faster than those getting money in the mail. This could come into play if congress decides to issue a fourth stimulus check.

Please reach out to your Somerset advisor at 317.472.2200 or info@somersetcpas.com with any questions.