The Internal Revenue Service will again give Americans extra time to file their taxes as a result of the pandemic, according a congressional aide briefed on the decision.
Instead of the usual April 15 deadline, filers will instead have until May 15, said the aide, who spoke on the condition of anonymity because no announcement had been made. The extra time is intended to ease the burden on filers dealing with the economic upheaval caused by the pandemic, which has put millions out of work or cut back their hours.
The one-month delay is not as much extra time as the I.R.S. offered last year, when the filing deadline was pushed to July 15, but it should make it easier for taxpayers to get a handle on their finances. And that includes a key change that only took effect with the signing of the American Rescue Plan: For 2020 only, the new law made the first $10,200 of benefits tax-free for people with incomes of less than $150,000.
Officials at the Treasury Department and the Internal Revenue Service did not immediately respond to requests for comment on Wednesday afternoon.
The news was reported earlier by Bloomberg News.
Pressure to extend the deadline had been mounting. The American Institute of Certified Public Accountants said on Tuesday that the pandemic had created “immeasurable hardship,” making it difficult for taxpayers and practitioners to meet the April 15 deadline. “The I.R.S. must not overlook the impact the pandemic has had on this year’s tax filing season,” the group said in a statement.
And lawmakers from both parties called on the Internal Revenue Service to delay Tax Day, noting complicated provisions to the tax code have been made in the recently passed economic relief package and the filing delays last year.
Charles Rettig, I.R.S. commissioner, will testify before Congress on Thursday about the 2021 filing season.
Source: Read Full Article