IRS Offers Paid Leave Tax Credit Guidance to Small Employers Under the American Rescue Plan


On April 29, 2021, the IRS published IR-2021-96. In this issue, the IRS reports that an estimated 16 million taxpayers will automatically receive extra time needed this year to pay and file their 2020 Income Taxes, without filing an extension due to 3 different scenarios that follow:

  • Disaster victims of the February 2021 Winter Storms.  Specifically, those living in Texas, Oklahoma, and Louisiana who have at least one person qualifying for FEMA assistance have until June 15, 2021 to file and pay taxes due. 
  • Military members serving in combat zones have an additional 180 days to file and pay taxes due.   
  • U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico have until June 15, 2021 to file their 2020 tax returns and pay taxes due.  Military on duty outside of the U.S. and Puerto Rico who do not qualify for the 180-day combat zone extension are also included.  Anyone in this group should attach a statement to their return explaining which situation applies.  

Earlier this year, the IRS postponed the usual April 15th due date for filing individual income tax returns to May 17, 2021.  Even so, many Americans need additional time to meet their tax obligations.  As a reminder, anyone can file for a 6-month tax-filing extension, moving the filing date to October 15, 2021.  However, 2020 tax payments are still due by the May 17th date.  The IRS will automatically process an extension when a taxpayer selects Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, which estimates their tax liabilities, and includes either a full or partial tax payment by May 17th using the Electronic Federal Tax Payment System or a debit or credit card. There is no need to file a separate Form 4868. 

SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922.  Reach out today at or call at (888)375-3049. 


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