Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

IRS extends U.S. tax deadline until May 17, bowing to congressional pressure

Economy Mar 17, 2021 06:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. A security camera hangs near a corner of the Internal Revenue Service (IRS) building in Washington 2/2

By David Lawder

WASHINGTON (Reuters) - The U.S. Internal Revenue Service said on Wednesday it was extending the federal income tax filing and payment deadline by about a month until May 17 due to the coronavirus pandemic, bowing to pressure from congressional Democrats.

In a statement, the IRS said the extension would be automatic, with no need to file any forms and no penalties or interest on taxes due that are paid between April 15 and May 17.

The move marked a reversal of the IRS' earlier stance, which was to maintain as normal a tax-filing season as possible in order to speed refunds to households. A year ago, as coronavirus lockdowns began, the IRS delayed the filing and tax payment deadline by three months, to July 15.

IRS Commissioner Charles Rettig said the delay was because of the "tough time for many people" caused by the pandemic.

"Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds," he said in a statement, adding that filing electronically with direct deposit also could help taxpayers quickly get any coronavirus stimulus payments they are owed.

The Treasury said earlier on Wednesday it had sent out some 90 million direct payments to Americans worth $242 billion since Friday, a day after President Joe Biden signed into law a $1.9 trillion COVID-19 relief plan.

House of Representatives Ways and Means Committee Chairman Richard Neal and Oversight Subcommittee Chairman Bill Pascrell, who had pressed the IRS for a delay this year, praised the decision.

"Under titanic stress and strain, American taxpayers and tax preparers must have more time to file tax returns," the two Democrats said in a statement.

House Democrats had been demanding that the IRS issue an extension, in part because this year's tax filing season started about two weeks later than last year, giving households struggling with the pandemic less time to file. They also raised concerns about a backlog of unprocessed returns even as the agency is responsible for distributing a new round of aid payments.

Rettig is due to testify on Thursday at a hearing before the Ways and Means oversight panel.

"He would be on the defensive if the IRS didn’t announce an extension," said Nina Olson, executive director of the Center for Taxpayer Rights.

"The filing season was delayed at the beginning, so pushing it back to May 17 reflects that delayed start but doesn't push it so far into the summer that the IRS just gets further and further behind in processing," Olson said.

 

IRS extends U.S. tax deadline until May 17, bowing to congressional pressure
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Joel Schwartz
Joel Schwartz Mar 17, 2021 6:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is a huge red flag. Could it be that many Americans cannot pay their taxes this year?
Bubba Born
Bubba Born Mar 17, 2021 6:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As our income taxes are a "pay as you system" I doubt it. More likely 1099s are delayed and the IRS is still understaffed and sees a delay in filing last year's taxes being carried over to this year. Based upon the horrible complexity of the US tax system,nI feel no pity for either the Legislature or the IRS. They've created the mess, let them now deal with it.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email