x

Economy

IRS Will Delay Tax Filing Due Date Until May 17

Americans will be getting extra time to prepare their taxes. The Internal Revenue Service says it's delaying the traditional tax filing deadline from April 15 until May 17. 

The IRS announced the decision Wednesday and said it would provide further guidance in the coming days. The move provides more breathing room for taxpayers and the IRS alike to cope with changes brought on by the pandemic. 

"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 decision postpones when individual taxpayers must file their return and when their payment is due. The IRS said 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. 

Taxpayers do not need to take any action to take advantage of the new deadline. Those who need more time beyond May 17 can request an extension until October 15. 

The new deadline does not apply to estimated tax payments that are due on April 15; those remain due by that day. 

The decision to extend the deadline comes after an intense year for the chronically underfunded IRS. The pandemic hit in the middle of last year's tax filing season, setting the agency back in terms of processing. The IRS has also been a key player in doling out government relief payments, and is currently helping to send out the third round of payments in the middle of the current tax filing season.

Additionally, the extension gives the IRS time to issue guidance on recent tax law changes. The American Rescue Plan excludes the first $10,200 of unemployment benefits from federal taxes for those making less than $150,000. 

"Never before has the law changed so substantially in the middle of tax filing season," Patrick Thomas, director of Notre Dame Law School's Tax Clinic, said in a statement. 

The IRS must issue guidance for taxpayers and tax preparers alike as millions of returns already filed likely do not account for this change. 

A number of lawmakers and professionals from the tax community have urged the tax filing season be extended to accommodate for these pressures. The House Ways and Means Committee applauded the move. 

"This extension is absolutely necessary to give Americans some needed flexibility in a time of unprecedented crisis," said Chairman Richard Neal, D-Mass. and Rep. Bill Pascrell Jr., D-N.J., chairman of the panel's oversight subcommittee.

Rettig is expected to speak to the committee tomorrow about how the IRS is managing this filing season and the need for this extension. 

The IRS continues to urge people to file as soon as possible, particularly those who are owed refunds. In some cases filing will help taxpayers more quickly get any remaining relief payments they are entitled to.

RELATED

NEW YORK — Black Friday marks a return to familiar holiday shopping patterns, but inflation is weighing on consumers.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

NYPD Οfficers, Βystander Save Man who Fell on Subway Tracks (Video)

NEW YORK — Two New York City police officers and a bystander raced to save a man who fell on the tracks at a Manhattan subway station, plucking him out of the way of an oncoming train in a daring rescue captured by an officer's body camera.

ATHENS – While the New Democracy government said national security requires phone bugging – but denied using Predator spyware – some Greek journalists said they believe they're being tracked, and especially anxious in the wake of the unsolved murder of investigative reporter Giorgos Karaivaz.

MONTREAL — Pedro Meraz says living in Colima, Mexico, was like living in a war zone, with shootings, burning cars and dismembered bodies being left outside of schools.

HONOLULU — As Hawaii's governor, David Ige faced a volcanic eruption that destroyed 700 homes, protests blocking construction of a cutting-edge multibillion-dollar telescope and a false alert about an incoming ballistic missile.

CAPE CANAVERAL, Fla. — NASA's Orion capsule entered an orbit stretching tens of thousands of miles around the moon Friday, as it neared the halfway mark of its test flight.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.