IRS decision shows wisdom
The taxman cometh — albeit a few weeks later for those who want to delay the encounter.
The Internal Revenue Service has wisely extended the end of the tax filing season from April 15 to May 17.
The bigger window for filing will work for citizens and the government alike. The events of 2020 — decreased earnings for many, stimulus checks for most — cried for flexibility on both sides of the income tax filing equation.
The IRS announced March 17 that Americans will get an extra month to prepare their taxes. In 2020, the start and end of the 2019 filing season was delayed.
“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 extension translates to extra time for preparation as well as extra time to write any check that may be due. Given the state of unemployment across the country, paying the piper could likely be a burden too heavy for too many. For those who will be expecting a refund, the wider window for filing will theoretically give government processors time to issue those refunds in quicker fashion.
The IRS decision means that 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. No action is needed on the part of taxpayers who avail themselves of the new deadline. And those who need time beyond May 17 still can request an extension until Oct. 15.
The IRS is struggling, too. Untold numbers of Americans still have not received stimulus checks to which they are entitled from 2020 pandemic relief actions even as new checks are being cut for the most recent stimulus program. What’s more, tax refunds due for 2019 were delayed.
The deadline extension doesn’t fix the big problems facing the IRS. Congress has slashed the agency’s budget by billions of dollars in recent years, resulting in inadequate staffing and computer system deficiencies. The remedy here is adequate funding, a matter that should be given priority status.
In the meantime, this extension works for all.