DISCLAIMER: As the COVID-19 public health situation evolves, new regulations are being continually issued. This page/story/information may not include the most recent information.Tanza Loudenback 41 minutes ago
- The federal tax deadline will move to mid-May, according to a Bloomberg report.
- The IRS has yet to confirm the deadline extension.
- An extension would give taxpayers and preparers more time to file and pay, and the IRS more time to implement new tax laws included in the latest stimulus bill.
The Internal Revenue Service plans to push the 2020 federal tax deadline to mid-May, according to a report from Bloomberg. The deadline extension has not yet been confirmed by the IRS.
In a letter to the IRS and Treasury Department on Tuesday, more than 100 members of Congress asked for the federal deadline to be extended.
“Almost a year [after last year’s tax-filing deadline was extended], we are still grappling with the massive economic, logistical, and health challenges wrought by this devastating pandemic. Millions of stressed-out taxpayers, businesses, and preparers would appreciate an extension of the deadline to file their 2020 tax returns,” they wrote.
The IRS moved the tax deadline back in 2020
Last year, the IRS moved the tax deadline from April 15 to July 15 to give taxpayers and preparers more time to file and pay during widespread coronavirus shutdowns. Most states that tax income followed suit, postponing their deadlines by 60 to 90 days.
The pandemic is still making it difficult for some people to get the help they need, Ways and Means Committee Chair Richard Neal and Oversight Subcommittee Chair Bill Pascrell, Jr. said in a joint statement on March 8.
“Facing enormous strain and anxiety, taxpayers need flexibility now. We demand that the IRS announce an extension as soon as possible,” they wrote.
After the winter storms knocked out power in several southern states in February, the IRS extended the federal tax deadline for residents and business in Texas, Louisiana, and Oklahoma to June 15.
Extending the deadline for 2020 tax returns nationwide will allow for additional time to implement new tax laws authorized by the American Rescue Plan, Neal and Pascrell said, including tax forgiveness on unemployment income up to $10,200.
Tax professionals have also expressed concern about the April deadline. In a March 4 letter, American Institute of Certified Public Accountants Chair Christopher W. Hesse, on behalf of the organization with more than 431,000 members, said it didn’t “reflect the real-world hardship and challenges imposed on taxpayers and tax professionals,” and requested a June 15 due date for returns and payments.
This is a developing story.