The IRS plans to delay its usual tax filing deadline from April 15 to May 17, giving taxpayers some respite in an unusually chaotic filing season.
Accountants had asked the tax agency to postpone the deadline due to the ongoing challenges of the Coronavirus pandemic for taxpayers and the IRS, which still faces a backlog of tax returns last year. Bloomberg News first reported a delay in the tax deadline.
The Treasury and the IRS confirmed Wednesday afternoon that the tax filing deadline would be postponed until May 17. The deadline for tax payments, such as quarterly taxes on employment or unpaid taxes, will also be postponed until May 17.
The American CPA Institute this week had urged the IRS to delay the filing deadline, citing the impact of the pandemic on U.S. taxpayers, as well as on the tax agency itself, which is still trying to dig itself out. a late refund of the last tax filing season. Lawmakers on Wednesday applauded the extension to the tax agency, calling it “absolutely necessary.”
“Practitioners have been saying,‘ We’re here, but there aren’t enough hours a day to do everything that’s been put to us, ’” said Meredith Tucker, chief tax officer at accounting firm Kaufman Rossin. under fiscal season one more month, but we need more time. “
Tax preparers have been assessing changes to the tax code, including $ 1.9 trillion last week American Rescue Plan, which will affect issues ranging from unemployment benefit taxes to the child tax credit, as well as payroll protection program loans.
The additional time applies to individual taxpayers, including those who pay self-employed taxes, such as private owners and workers in the concerted economy, the IRS said. He added that individual taxpayers do not need to submit any forms or call the IRS to qualify for the May 17 deadline.
Given previous tax seasons, it is likely that half of taxpayers have not yet filed their return, said Curtis Campbell, president of TaxAct. He added that even with the extra breathing room, taxpayers should plan to get their return to the IRS sooner rather than later.
“I would advise people to still file the file as soon as they can, especially if they need their tax refund,” Campbell said. “The IRS is doing everything it can to help deliver to consumers quickly and get them the latest up-to-date information can help taxpayers get their refunds and other possible future financial payments faster.”
Lawmakers applauded the IRS’s decision to postpone the deadline.
“This extension is absolutely necessary to provide Americans with the flexibility they need in a time of unprecedented crisis,” said Rep. Bill Pascrell, Jr., a New Jersey Democrat and chairman of the U.S. Roads and Media Oversight Subcommittee. House, and Richard Neal, Democrat of Massachusetts, in a joint statement. “Under the titanic stress and tension, U.S. taxpayers and tax preparers need to have more time to file returns.”
At the same time, the IRS is responsible for distributing millions of federal stimulus payments in addition to processing a delay in returns. Last year, the agency switched to remote work due to the pandemic, which caused paper statements to be stored in trailers until they could get there.
“Even the IRS, faced with a major pending mail processing, a delayed start to the fiscal 2021 season, flooded phone lines and a new round of COVID-19 relief payments, is overwhelmed,” said the AICPA.