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Almost all states that impose an individual income tax are extending their filing and payment deadlines for individual income tax returns to align with the federal filing and payment deadlines announced by the IRS on March 17, 2021. Under the federal extension, individuals have until May 17, 2021 (extended from April 15, 2021) to file their federal income tax returns and to pay their 2020 income tax liabilities, without penalties or interest. The federal extension relief does not apply to estimated tax payments, which are still due on April 15, 2021 (see Tax Alert 2021-0586). Similarly, states following the May 17, 2021 federal extension are not extending the deadline for making estimated tax payments or the filing and payment deadlines for corporate or fiduciary income tax returns, unless otherwise noted.

The following states align their return filing and payment deadlines with the recently extended federal filing and payment dates: Arkansas (extension includes 2020 returns of S Corporations, fiduciaries and estates, partnership and composite returns), California, Colorado, Connecticut, Delaware, District of Columbia (extension applies to all income tax returns, including District Forms D-20 (corporate), D-30 (unincorporated business), D-40 (individual), D-41 (fiduciary), and D-65 (partnership) tax filers, and includes combined return filers), Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia and Wisconsin.

Alabama and North Carolina have extended their individual income tax return filing deadlines to May 17, 2021, and will not impose penalties on late filed payments, provided such payments are received by May 17, 2021. In their announcements, both states' taxing authorities stated that do not have the authority to waive interest.

The Louisiana Department of Revenue (LA DOR) and Oklahoma Tax Commission (OTC) have not addressed the IRS extension for individual income taxpayers but are providing extensions to taxpayers impacted by the February 2021 winter storms. The LA DOR extended the 2020 individual income tax filing and payment deadlines to June 15, 2021. The OTC extended the 2020 individual income tax payment deadline to June 15, 2021, without penalties or interest.

Due to recent state law changes that require modification to the state's income tax return, Maryland has extended its filing and payment deadline to July 15, 2021.

The Iowa Department of Revenue extended the 2020 individual income tax filing and payment deadline from April 30, 2021 to June 1, 2021, without penalties and interest. This extension includes the first quarter estimated individual income tax payment.

The Hawaii Department of Taxation said that it will not extend its return filing deadline, which remains April 20, 2021, but that taxpayers will automatically be granted a six-month extension if the taxpayer is due a refund or the taxpayer pays the proper estimated tax amount owed by April 20, 2021.

The Arizona Department of Revenue noted on its webpage (FAQ During Tax Season - Individual Income Tax - Will Arizona be extending the filing deadline to May 17 to match the federal deadline?) that the legislature is considering a bill (2021 AZ SB 1297 (as amended by the Arizona House of Representatives)) to extend the individual income tax filing deadline to May 17, 2021.

Implications

This Alert focuses on states' responses to the federal individual income tax extension of the 2020 filing deadline. Some states are providing separate, longer extensions for certain taxpayers impacted by the February winter storms and other natural disasters. The prior list does not capture this information, unless otherwise noted.

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