IRS will delay tax filing due date.
The Internal Revenue Service will delay the April 15 tax filing deadline by about one month, giving taxpayers additional time to file returns and pay any outstanding levies, according to a House committee.
The IRS is still figuring out what the final deadline will be. The agency is setting the filing deadline for May 17, according to the House Ways and Means Committee. May 15 is a Saturday and the IRS typically delays filing deadlines that fall on a weekend or holiday to the next business day.
The IRS and Treasury Department
didn’t immediately comment Wednesday or provide further details. But the committee confirmed and applauded the move, citing the importance of this tax season because of all the tax changes and coronavirus aid administered through the tax code. The delay provides added time for both taxpayers and the IRS alike given the pressure from the pandemic.
The filing extension gives taxpayers additional breathing room to meet their tax obligations in what is becoming one of the most complicated tax seasons in decades. The change comes after calls from accountants and leaders in Congress to delay the due date as new legislation and pandemic-related work changes disrupt taxpayer plans.
Among the changes this tax season are last-minute amendments to the $1.9 trillion stimulus bill signed into law earlier this month that give filers a new tax exemption on up to $10,200 of jobless benefits. The individual tax return, Form 1040, is also the mechanism for people to claim any missing $1,200 or $600 stimulus payments from last year.
The changes in tax law will mean some filers will have to wait for updated forms, resubmit their returns, and some will need to consult a tax adviser on how to proceed if they’ve already filed.
IRS Commissioner Charles Rettig is expected to speak to the House Ways and Means Committee today about how the IRS is managing this filing season and the need for this extension.
The IRS, which has the administrative authority to delay tax deadlines without Congress, also extended the filing season last year at the beginning of the COVID-19 pandemic.
As of early March, the IRS has been behind last year’s metrics in the number of tax returns filed and processed and the number of refunds issued. The filing season, which began Feb. 12, started about two weeks later than usual, and has contributed to the slump.