The Internal Revenue Service is planning to delay the April 15 tax filing deadline to at least May 15, giving taxpayers additional time to file returns and pay any balances due.
We all had a very chaotic year – with COVID, the quarantine, the rush for those eligible to be vaccinated to get vaccinated, the CARES Act and PPP, and the latest tax law change, the American Rescue Plan (ARP). Members of Congress and the IRS have been inundated with requests from CPAs and business owners to modify the filing deadline to give filers and preparers, and the IRS, a chance to absorb the new law and adjust forms for the changes.
Among the changes this tax season are last-minute amendments to tax return filing requirements attributable to the $1.9 trillion ARP stimulus bill signed into law earlier this month, which gives filers a new tax exemption of up to $10,200 of unemployment benefits.
The delay in dates reported by the IRS and Treasury Department comes after increased calls and requests to extend the tax season following the passage of the ARP, which tasked Treasury with issuing another round of stimulus payments while processing tax returns and refunds. (There are presently no decisions to extend any additional due dates other than the April 15 filing date.)
Marcum Observation
The news that the IRS will postpone the filing deadline to sometime in May is great news for everyone. Of course, many filers may not be ready by May either, but the filing deadline delay may allow some filers a bit of breathing room and the IRS the chance to modify and clarify tax forms.
Marcum suggests that filers continue to gather their tax return data and present it to their accountants sooner rather than later, so tax return preparers can plan to process the filings and inform taxpayers of refunds or balances due in advance of any deadlines.
Once the IRS releases its formal plan on the extended due date and what returns and payments will be included, Marcum will provide a detailed Tax Flash.
If you have any questions related to the new filing deadline, contact your Marcum Tax advisor.
Coronavirus Resource Center
Have more questions about the impact of the coronavirus on your business? Visit Marcum’s Coronavirus Resource Center for up-to-date information.
