U.S. Individual Income tax return, 1040 , withholding certificate

Tax Filing Deadline Rollback

March 18, 2021

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You suspected that another tax filing deadline rollback was coming, didn’t you?

The Internal Revenue Service (IRS) has announced that the deadline for filing and payment of federal income taxes has been extended until May 17, 2021.

House Ways and Means Chair Richard E. Neal, Democrat, Massachusetts, stated, “This extension is absolutely necessary to give Americans some needed flexibility in a time of unprecedented crisis.”

The tax deadline rollback was announced the same day that the Treasury disbursed 90 million economic Impact payments from the American Rescue Plan. This first wave of payments alone was valued at more than $242 billion. The responsibility by the IRS for getting stimulus payments promptly to Americans is one motivator for the decision to delay tax filing deadlines.

Just as importantly, changes to tax laws as a result of the COVID-19 pandemic, have left both taxpayers and tax preparers scrambling to understand new and sometimes complex changes. Bloomberg News describes this year as, “one of the most complicated tax seasons in decades.”

Still, despite the 30-day extension, questions are being raised regarding whether, one more month is sufficient time for taxpayers and preparers to work their way through the maze of new tax laws and the atypical financial changes many households have experienced.

The Wall Street Journal quoted Jeffery Porter, a West Virginia CPA, who pointed to the June 15, 2021, deadline extension already in place in winter storm disaster areas of Texas, Louisiana, and Oklahoma. Porter is not likely to be the only person wondering why the IRS has established two different tax filing timelines, as he questioned, “Why not make the rest of the country consistent?”

#taxes #IRS

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated herein.

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Lion Street Advisors // Lion Street Financial

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