IRS delays tax deadline until mid-May after a chaotic year

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(Bloomberg) – The Internal Revenue Service plans to postpone the April 15th deadline for tax filing by about a month to give taxpayers additional time to file tax returns and pay outstanding dues, three with that Discussions trusted people.

The IRS is still figuring out what the final deadline will be. The agency is considering setting the filing deadline on either May 15 or May 17, according to two people who were not authorized to speak publicly because the decision had not yet been finalized. 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 did not respond to requests to comment on the delay.

Renewing the registration would give taxpayers additional freedom to meet their tax obligations in one of the most complicated tax seasons in decades. The change would come after calls on accountants and Congress leaders to postpone the due date as new laws and changes related to pandemics disrupt taxpayers’ plans.

Changes this tax season include short-term amendments to the $ 1.9 trillion stimulus bill, which went into effect earlier this month, that allow applicants a new unemployment benefit tax exemption of up to $ 10,200. The individual tax return, Form 1040, is also the mechanism for individuals to claim missing US $ 1,200 or US $ 600 last year recovery payments.

Aside from the disruption caused by the pandemic, the changes to tax law mean some applicants will have to wait for updated forms and re-submit their tax returns, and some will have to consult a tax advisor on how to proceed if they have already filed.

Read More: US Tax Refunds Fall 32% in Slow IRS Filing Season

Richard Neal, Chairman of House Ways and Means, Bill Pascrell, Representative, and Mike Crapo, the top Republican on the Senate Finance Committee, have asked IRS Commissioner Chuck Rettig to postpone the filing deadline and cite the importance of this tax season because of all tax changes Coronavirus help, which is managed via the tax code.

The IRS, which has the administrative power to postpone tax deadlines without Congress, also extended the filing season last year at the start of the COVID-19 pandemic.

Since the beginning of March, the IRS has lagged behind last year’s readings in terms of the number of tax returns filed and processed and the number of refunds issued. The filing season, which began on February 12, started about two weeks later than usual and has contributed to the slump.

The tax expansion also comes as another big job has been entrusted to the IRS: handling a third round of direct payments to households, this time for $ 1,400 each. The IRS said it has made around 90 million payments to date, totaling $ 242 billion.

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