IRS moves the April 15th U.S. tax deadline to May 17th
The Internal Revenue Services offices in Washington, DC
Adam Jeffery | CNBC
The IRS and Treasury Department will move the April 15 deadline to May 17, the agencies said Wednesday.
“This is still a difficult time for many people and the IRS intends to continue doing everything it can to help taxpayers cope with the unusual circumstances surrounding the pandemic while working on important tax administration tasks,” said IRS Commissioner Chuck Rettig made a statement.
Additionally, taxpayers can delay paying funds owed to the IRS until May 17th. If payers still need more time to file their tax returns, they can request an extension (but no taxes owed) until October 15 by submitting Form 4868.
The extended period only applies to federal income declarations and taxes. This means taxpayers will need to check to see if state tax due dates have changed. Not all federal states have the same registration deadline as the federal government.
Estimated quarterly payments are due April 15th.
The IRS will provide more guidance on the extended filing season in the coming days, the tax collector said.
Today’s move comes after calls to extend the tax season rose by $ 1.9 trillion following the passage of the US rescue plan. This meant the agency was tasked with sending another round of stimulus payments while processing tax returns and refunds.
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“This expansion is absolutely necessary to give Americans the flexibility they need in a time of unprecedented crisis,” said Bill Pascrell Jr., DN.J., chairman of the House Surveillance and Surveillance Subcommittee and Richard Neal, chairman of House Ways and Means, D-Mass., in a Wednesday statement. “Under titanic stress and strain, American taxpayers and tax advisors must have more time to file tax returns.”
The latest Coronavirus Relief Act, signed by President Joe Biden on March 11 mid-tax season, made a number of changes that have contributed to an already complex filing year for many.
The bill made the first $ 10,200 in unemployment income, or $ 20,400 for married couples filing together, tax-free for applicants with adjusted gross income less than $ 150,000 (for singles and couples) in 2020.
The child tax credit has also been increased to $ 3,000 per year for children ages 6-17 and $ 3,600 per year for children under 6 years of age. Parents could receive a monthly portion of the tax credit as early as this summer.
“May 17th is a lot better than April 15th,” said Adam Markowitz, a registered agent at Howard L. Markowitz PA CPA in Leesburg, Florida. “I still don’t think it will solve all problems.”
The accountants are still waiting for guidance from the IRS on several points that will affect this tax season. On Thursday, IRS Commissioner Charles Rettig will testify in a hearing on the 2021 tax returns season convened by the Subcommittee on Monitoring the Ways and Means of the House.
Aside from the tax changes made by the latest Covid bill, filing a tax return this year is especially important as it is the only way to get back business stimulus payments that you may be eligible for and have not received.
If your circumstances have changed or you are not an applicant, you will need to file a tax return with the IRS and claim the refund credit in order to receive payments for the economic impact you owed and to ensure that the agency has your information on file in the future Payments.
“Despite the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds,” Rettig said in a statement. “Electronic filing with direct deposit is the fastest way to get refunds and it can help some taxpayers get more quickly any remaining stimulus payments that they may be entitled to.”
The IRS postponed the start of the tax season to February 12 in January. This gave the agency more time to prepare under the December Covid Relief Act, which included a second round of stimulus checks for Americans that were presented to the agency for delivery.
At the time, the tax collector kept the typical filing deadline of April 15th, although that meant a shorter filing season than usual.
In February, the agency extended the deadline for filing taxes for individuals and corporations in Texas and other states declared disaster areas by the Federal Emergency Management Agency after winter storms left many residents without power.
CNBC’s Ylan Mui contributed to this report.
(Correction: The IRS plans to move the deadline for filing taxes to May 17. In an earlier version of this entry, the date was incorrectly stated.)