The IRS is planning to postpone its usual April 15 filing deadline until May 17, giving taxpayers some breathing space in an unusually chaotic reporting season.
Accountants asked the tax agency to postpone the deadline, given the continued challenges of the coronavirus pandemic for taxpayers and the IRS, which is still dealing with an accumulation of tax returns from last year. The tax delay was first reported by Bloomberg News.
The Treasury and the IRS confirmed on Wednesday that the tax filing deadline would be postponed until May 17. The deadline for tax payments – such as quarterly self-employment taxes or underpaid tax amounts – will also be postponed until May 17.
The American Institute of CPAs this week urged the IRS to delay the filing deadline, citing the impact of the pandemic on US taxpayers, as well as the tax agency itself, which is still trying to get rid of a backlog of statements from last tax season. archiving. On Wednesday, lawmakers applauded the tax agency for the extension, calling it “absolutely necessary”.
“Professionals have said, ‘We are here, but there are not enough hours in the day to do everything that has been put in front of us,'” said Meredith Tucker, tax director at the accounting firm Kaufman Rossin. “It is difficult to think that we will be under the tax season for another month, but we need more time.”
Tax preparers have assessed changes to the tax code, including last week’s $ 1.9 trillion American Rescue Plan, which will affect issues ranging from taxes on unemployment benefits Tax Credit for Children, as well as loans from the Salary Protection Program.
The extra time applies to individual taxpayers, including those who pay taxes on self-employment, such as individual landlords and workers in the gigantic economy, the IRS said. He added that individual taxpayers do not need to complete any forms or call the IRS to qualify for the May 17 deadline.
Considering previous fiscal harvests, it is likely that half of taxpayers have not yet made their statements, said Curtis Campbell, president of TaxAct. He added that even with the extra breathing space, taxpayers must still plan to send their statements to the IRS sooner rather than later.
“I would advise people to file as soon as possible, especially if they need tax refunds,” said Campbell. “The IRS is doing everything it can to help deliver quickly to consumers and getting the latest information up to date can help tax officials get their return and other potential future economic payments more quickly.”
Lawmakers applauded the IRS ‘decision to postpone the deadline.
“This extension is absolutely necessary to give Americans some flexibility needed in a time of unprecedented crisis,” said Rep. Bill Pascrell Jr., Democrat of New Jersey and chairman of the House Sub-committee on Ways and Means, and Richard Neal, Democrat Massachusetts in a joint statement. “Under titanic stress and tension, American taxpayers and tax preparers should have more time to file tax returns.”
At the same time, the IRS is tasked with distributing millions of federal stimulus payments in addition to processing a returns portfolio. Last year, the agency switched to remote work due to the pandemic, which made them store paper tax returns in trailers until they could reach them.
“Even the IRS – facing a significant mail processing delay, a delayed start to the 2021 tax season, flooded phone lines and a new round of relief payments COVID-19 – is overwhelmed,” said AICPA.