On March 17, 2021, the Internal Revenue Service issued Notice 2021-59 that provided an automatic extension of the due date for certain federal income tax returns and payments from April 15, 2021 to May 17, 2021. This was in response to the ongoing COVID-19 pandemic and the backlog of unprocessed returns and unopened mail at the IRS, all which contributes to difficulty of completing tax returns on time. To remain consistent with the IRS notice, the Michigan Department of Treasury announced that it would also extend the filing deadline from April 15, 2021 to May 17, 2021 for those returns related to state income taxes on individuals. Specifically, the following relief is provided:
- Any individual taxpayer obligated to file a MI-1040 individual tax return or make a state income tax payment associated with these returns by April 15, 2021 (for tax year 2020) will have the due date automatically postponed to May 17, 2021. Taxpayers will not have to file any forms to request this postponement and there is no limit on the amount of payment due to be postponed. Penalties and interests are also suspended and will not begin to accrue UNLESS the taxes due remain unpaid as of May 18, 2021.
- The deadline for requesting an extension of time to file the annual income tax return has moved from April 15, 2021 to May 17, 2021. Michigan taxpayers will still be able to request a six-month extension of time to file the state tax return, but the due date for extended annual returns remains on October 15, 2021.
- Any individual taxpayer who has a deadline of April 15, 2021 to make a claim for refund or credit related to the filing of a Form MI-1040 return will automatically have that deadline extended to May 17, 2021.
However, this relief does NOT cover the following:
- All state tax returns and state income tax payments not related to Form MI-1040 are still due April 15, 2021. This includes fiduciary tax returns for estates and trusts (Form MI-1041) or any corporate tax returns.
- The postponement only applies to state tax payments and state tax returns for tax year 2020 due April 15, 2021. Other tax years where the taxpayer did not file a return or pay a tax are not affected, so penalties and interest will accrue as normally provided under Michigan Complied laws.
- These extensions do not apply to quarterly estimated tax payments due to the State of Michigan in 2021. Taxpayers must still make their estimated quarterly tax payment on or before April 15, 2021 to avoid penalties. Generally, estimated tax payments must be made by individuals whose income is not subject to income tax withholding such as self-employment income, interest, dividend or rental income.
- These extensions do not apply to city income taxes, since cities are a distinct revenue collecting agent from the State of Michigan. If you are required to pay city income taxes, then you should contact the city assessor’s office to see if the tax deadline was extended for city taxes only.
Despite the extended deadlines, taxpayers are still encouraged to file their Michigan income tax returns as soon as possible to receive your refund. If you need to get your Michigan tax returns filed right away, our tax attorneys are available to help. Our offices remain open to assist you with all of your legal and tax needs. If you have questions about the 2021 tax filing deadlines or any other aspect of Michigan taxation, then do not hesitate to contact Kershaw, Vititoe & Jedinak PLC for assistance today.