The Treasury Department and IRS announced Thursday that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.
A news release from House Ways and Means Committee Chairman Richard E. Neal (D-MA) and Oversight Subcommittee Chairman Bill Pascrell, Jr. (D-NJ) applauded the decision for the new deadline to be May 17. “This extension is absolutely necessary to give Americans some needed flexibility,” they wrote.
IRS Commissioner Charles Rettig is set to appear Thursday, March 18, before Rep. Pascrell’s House Ways and Means subcommittee to testify about the 2021 filing season.
SCACPA wants all our members to know we understand the importance of certainty for taxpayers and tax practitioners regarding due dates, and we will continue to closely monitor this situation.
Previous Coverage: AICPA Statement (Feb. 24) — Further Relief and Deadline Certainty Needed This Tax Season from IRS
The AICPA believes certainty and further relief is needed this filing season. As we approach the April 15 filing and payment deadline for the 2020 tax year, many taxpayers and tax professionals continue to struggle to prepare and file tax returns. In a letter sent to Treasury and the IRS on Tuesday, Feb. 23, the AICPA urged Treasury and the IRS to:
- Let taxpayers and preparers know by March 1 if the tax filing and payment deadlines will change
- Provide taxpayers with relief from both the underpayment of estimated tax and late payment penalties for the 2020 taxable year
- Halt compliance actions until the IRS is prepared to devote the necessary resources for a proper and timely resolution of the matter
- Expand the existing temporary e-signature relief
“AICPA seeks certainty on filing deadline and relief for 2020 tax year” (Journal of Accountancy, Feb. 24, 2021)
In a three-page letter dated Feb. 16, the AICPA called attention to the hardship that millions of taxpayers and tax practitioners are facing while making good faith efforts to comply with their tax obligations. The AICPA called for relief from underpayment and late payment penalties for the 2020 taxable year.