IRS plans to maneuver the US tax deadline from April 15th to Might 17th
The Internal Revenue Services offices in Washington, DC
Adam Jeffery | CNBC
Taxpayers have more time this year to get their taxes in order.
The IRS plans to postpone the deadline for filing tax returns by about a month, originally as May 15, from the usual April 15, confirmed CNBC. However, since May 15th falls on a Saturday, the final deadline for submitting applications is likely to be the following Monday, May 17th. The IRS and Treasury Department failed to respond to a request for comment on the extension or the exact filing date.
This gives taxpayers additional time to file their 2020 tax returns and pay any amounts owed to the IRS.
The move from the IRS and Treasury Department came after calls for $ 1.9 trillion to extend the tax season after the US rescue plan was passed. This meant the agency was hired to send another round of stimulus payments while tax returns and refunds were processed.
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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, citing the extension date as May 17. “Under titanic stress and strain, American taxpayers and tax advisors need more time to file tax returns.
The latest Coronavirus Relief Act, signed by President Joe Biden on March 11 in the middle of the 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 gross adjusted income of less than $ 150,000 in 2020 (for both singles and couples).
In addition, the child tax credit has 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 get 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 with 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 items 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 recoup stimulus payments that you were entitled to and did not receive.
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.
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 American economic reviews 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 businesses in Texas to June 15, which was declared a disaster area by the Federal Emergency Management Agency after winter storms left many residents without power.
(Correction: The new deadline for filing your tax return is May 17. An earlier version of this story contained an incorrect date.)