IRS tax filing deadline changing to mid-May
Procrastinators will have until May 17, according to a congressional committee.
The Internal Revenue Service is extending the tax deadline by a month, according to reports Wednesday.
The IRS has not put out a public statement yet but Bloomberg, The Wall Street Journal, CNBC and The Washington Post are reporting the new deadline is expected to be in midMay.
The delayed filing deadline comes as the IRS is dealing with a massive backlog that has left it unable to fully process roughly 24 million tax filings from individuals and businesses since the 2019 tax year.
The American Institute of CPAs was calling for extending the filing and payment deadline for the 2020 tax year until June 15.
Democrats on the House Ways and Means Committee already requested that IRS Commissioner Charles Rettig extend the tax return filing season beyond April 15.
U.S. Sen. Mike Crapo, R-Idaho, a ranking member of the Senate Finance Committee, issued a statement Wednesday urging the IRS to extend the deadline and said there was growing bipartisan support.
“The various coronavirus relief programs created over the last year, including the bill signed into law just last
week, have resulted in a large amount of extra paperwork for taxpayers this year and have required tax preparation firms to constantly update their systems,” Crapo said in the statement. “The IRS should strongly consider extending the filing deadline, giving taxpayers and businesses more certainty and time to receive accurate guidance and file returns properly.”
Nearly 7 million tax filers who await their tax refunds face significant delays this tax season as the IRS rushes to send out stimulus checks to millions of struggling Americans who have faced economic hardship in the coronavirus pandemic. The agency is grappling with staffing and outdated IT systems at a time when it’s also implementing sweeping tax code changes from the COVID-19 relief packages.
Tax season was delayed from the start as the IRS began to accept and process tax returns on Feb. 12, which was a two-week delay.
The latest $1.9 trillion stimulus package creates a new tax break for tens of millions of workers who received unemployment benefits last year after businesses were forced to close and lay them off during the coronavirus pandemic.
As part of the American Rescue Plan, many taxpayers wouldn’t be required to pay taxes on up to $10,200 in unemployment benefits received last year. The exclusion is up to $10,200 of jobless benefits for each spouse for married couples.
IRS officials said Monday that more guidance will be available soon, for example, about what taxpayers need to do if they've already filed a federal income tax return but had jobless benefits in 2020. The IRS said taxpayers should not file amended returns just yet.