1040 forms of Personal Income Tax
Photographer: Daniel Acker / Bloomberg
Photographer: Daniel Acker / Bloomberg
According to three people familiar with the debates, the Internal Revenue Service plans to delay the tax deadline by April 15 by about a month, giving taxpayers extra time to file returns and pay outstanding taxes.
The IRS is still figuring out what the final deadline will be. According to two of the people, who were not allowed to speak publicly because the decision had not been finalized, the agency is considering setting a deadline to file on May 15 or 17. May 15 is a Saturday and the IRS usually delays the filing of deadlines that occur on a weekend or public holiday to the next business day.
The IRS and Treasury did not respond to requests for comment on the delay.
The filing extension would give taxpayers extra breathing space to meet their tax obligations in what is becoming one of the most complicated tax seasons in decades. The change would come after calls from accountants and congressional leaders to delay the due date, as new legislation and pandemic-related labor changes alter taxpayer plans.
Among the changes this tax season are last-minute changes to the $ 1.9 trillion stimulus bill signed into law earlier this month that offer applicants a new tax exemption Until Unemployment benefits of $ 10,200. The individual tax return, Form 1040, is also the mechanism for people to claim the missing $ 1,200 or $ 600 stimulus payments last year.
In addition to pandemic disruptions, changes in tax legislation will mean that some applicants will have to wait for updated forms, resubmit returns, and some will need to consult a tax advisor to proceed if they have already filed the application. · Licitud.
Read more: U.S. tax refunds plummet 32% in IRS filing season slowly
House Ways and Means President Richard Neal, Representative Bill Pascrell, and Mike Crapo, the top Republican on the Senate Finance Committee, have called on IRS Commissioner Chuck Rettig to delay the filing deadline, all citing the importance of this fiscal season due to all the tax changes and aid to the coronavirus administered through the tax code.
The IRS, which has the administrative authority to delay tax deadlines without Congress, also extended the filing season last year at the start of the COVID-19 pandemic.
By early March, the IRS had been behind last year’s metrics in the number of tax returns filed and processed and the number of returns issued. The presentation season, which began on February 12, began about two weeks later than usual and has contributed to the fall.
The tax extension also comes when the IRS has another big task: to process a third round of direct payments to households, this time for $ 1,400 each. The IRS said so far it has sent 90 million payments for a total of $ 242 billion.
(Updates with changes for this presentation season from the fifth paragraph.)