IRS delays deadline for tax filing until May 17

Americans will be getting extra time to prepare their taxes. The Internal Revenue Service says it’s delaying the traditional tax filing deadline from April 15 until May 17.

The IRS announced the decision Wednesday and said it would provide further guidance in the coming days. The move provides more breathing room for taxpayers and the IRS alike to cope with changes brought on by the pandemic.

“The IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS Commissioner Chuck Rettig said in a statement.

The decision postpones when individual taxpayers must file their return and when their payment is due. The IRS said taxpayers who owe money would not face any further penalties or interest if they pay by May 17. The new deadline also applies to individuals who pay self-employment tax.

Taxpayers who need more time beyond May 17 can request an extension until October 15.

The new deadline does not apply to estimated tax payments that are due on April 15; those remain due by that day.

The extension gives the IRS time to issue guidance on recent tax law changes. The American Rescue Plan excludes the first $10,200 of unemployment benefits from federal taxes for those making less than $150,000.

“Never before has the law changed so substantially in the middle of tax filing season,” Patrick Thomas, director of Notre Dame Law School’s Tax Clinic, said in a statement.

The IRS must issue guidance as millions of returns already filed likely do not account for this change.