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IRS plans to delay this year’s tax filing deadline to mid-May

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Democratic Representatives Bill Pascrell of New Jersey and Richard Neal of Massachusetts, chairman of the House Roads and Media Committee, said the new deadline would end on May 17th. The IRS issued a statement on Wednesday afternoon confirming the change of date.

There has been growing bipartisan support to extend the term. Lawmakers, led by Pascrell along with Democratic Rep. Jamie Raskin of Maryland and Republican Sen. Mike Crapo of Idaho, had urged the move, citing the pandemic.

Bloomberg he was the first to report the news of the deadline delay.
Last year, the The IRS moved the deadline to July 15, giving Americans an additional three months to file their taxes.

“Almost a year later, we are still facing the great economic, logistical and health challenges posed by this devastating pandemic,” Raskin and Pascrell wrote in a letter sent to the IRS earlier this week.

In a separate statement, Crapo noted that the major Covid stimulus laws passed by Congress over the past year have made several changes to the tax system.

“The various coronavirus relief programs created over the past year, including the bill signed by the law last week, have resulted in a lot of extra paperwork for taxpayers this year and have required companies to preparing for taxes that constantly update their systems, ”Crapo said. .

Delays are already piling up

As of March 5, the IRS had not yet been processed 6.7 million of the 2020 returns which had been filed since February 12th. He had processed about 49 million. The agency has processed approximately 88% of the returns it received compared to approximately 96% in the same period last year.
In addition to processing tax returns, the IRS is also sending out a third round of about 150 million stimulus payments. As of Wednesday, about 90 million had been sent.
Covid’s $ 1.9 trillion relief bill, signed into law President Joe Biden it also orders the IRS to send periodic payments to obtain a tax credit for extended children, as well as to handle various other changes, such as the waiver of income taxes. up to $ 10,200 in unemployment benefits received in 2020 for households earning less than $ 150,000, helping laid-off workers facing surprise tax bills on their unemployment benefits.

The IRS has not yet provided guidance to the unemployed who have already filed their tax return for 2020. If the agency cannot find an automatic way to adjust the returns that report unemployment income, it is possible that the applicants must submit amended statements, although the IRS does not recommend that it do so at this time.

The IRS has recently provided instructions and a worksheet for those who have not yet completed the 2020 declarations and who will report unemployment benefits. Guide the unemployed by filling in the correct amounts in Appendix 1 of Form 1040.

Sponsors of this provision are among those who urged the IRS to delay the filing deadline.

I am still working due to the delay of last year

The agency started a year ago. By the end of December, millions of declarations for fiscal year 2019 had yet to be processed. Many IRS workers were sent to work from home during the pandemic, leading to a delay in paper returns. Last year, at one point, it had to be stacking unopened mail stored in trailers.

“They’re already left behind,” said Nina Olson, who previously served as the national advocate for IRS taxpayers and is now executive director of the Center for Rights Contributor.

“They didn’t get through all the work of 2020 before they had to start the presentation season of 2021. So this year will be a real challenge,” he added.

The IRS extended the fiscal deadline to June 15 for people in Texas, Oklahoma and Louisiana who were hard hit by the February storms.

While the IRS extended its term, that doesn’t mean individual states will. If they do not, this means that applicants from these states may need to apply before April 15, unless they file an automatic extension.

This is because states often use federal adjusted gross income or federal taxable income as a starting point to determine the income of state taxpayers.

So far, Maryland is the only state that has extended the submission deadline, until July 15th. Other states have stayed with the original filing date, which is April 15 in most cases, according to the Federation of Tax Administrators.

The current dates of some states differ. They are Hawaii, April 20; Delaware and Iowa, April 30; Virginia, May 3; and Louisiana, May 17th.

This story was updated with additional details on Wednesday.

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