As the vaccines bring cheer, the economy is also starting to move forward; stimulus checks are on their way and more and more shops and businesses are reopening cautiously thanks to the efforts of the government and private sector. Now, there is some more good news on the horizon; to bring cheer to many Americans. The IRS has delayed the tax filing deadline. Tax payers have time until May17 instead of the customary April 15, to file returns for the financial year ending March 31.
Bloomberg was the first to report the extension of the filing deadline. Late Wednesday, the Treasury and the IRS confirmed the news. Tax payments such as quarterly self-employment taxes or underpaid tax amounts can also avail the delayed deadline.
In this chaotic season, the American Institute of CPAs had requested the IRS to delay the filing deadline. It had mentioned the pandemic and the backlog of returns from the last filing season as reasons to delay the filing. Tax preparers have also been assessing the changes that will arise as a result of the $1.9 trillion American Rescue Plan. This plan will impact a large number of issues including taxes on unemployment aid, Child Tax Credit, Loans from Paycheck Protection Programs and more.
The extra time will also be given to individual tax payers. The IRS said that this group also includes individuals who pay self-employment taxes such as sole proprietors and gig-economy workers. The agency said that these individuals need not file any forms or call the IRS as they are automatically eligible to qualify for the same deadline.
Lawmakers hailed the decision of the IRS to delay the deadline. The IRS itself has been working long hours to disburse millions of federal stimulus payments. It also has to process backlog of returns. The pandemic affected the normal functioning of the IRS as well. The AICPA said that the IRS “is overwhelmed.”