Tax day is getting delayed.
Facing a huge backlog of unprocessed tax returns and growing calls from accountants and lawmakers to extend this year’s filing period given the changes to the tax code in President Biden’s Covid relief plan, the Internal Revenue Service is pushing back the April 15 deadline to May 17.
"This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities," IRS Commissioner Chuck Rettig. Said in announcing the delay "Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds."
Lawmakers of both parties had pressed the agency to extend the deadline after the $1.9 trillion American Rescue Plan was passed earlier this month, requiring tax preparers to update their systems and tasking the IRS with sending out another round of relief payments even as it processes annual returns.
“This extension is absolutely necessary to give Americans some needed flexibility in a time of unprecedented crisis,” House Ways and Means Committee Chairman Richard Neal (D-MA) and Oversight Subcommittee Chairman Bill Pascrell, Jr. (D-NJ) said in a statement. “Under titanic stress and strain, American taxpayers and tax preparers must have more time to file tax returns.”
The IRS had pushed back the start of this year’s tax season to February 12, about two weeks later than usual, compressing what promised to be a complicated filing year even before the latest Covid relief law was enacted.
Number of the Day: $242 Billion
The Treasury Department and IRS said Wednesday that they have sent about 90 million direct payments so far totaling more than $242 billion under the latest Covid relief law. That’s more than half of the $410 billion in payments approved as part of the new law. While most of the payments so far were made by direct deposit, Treasury said it also sent out about 150,000 checks worth approximately $442 million.
You can check the status of your payment by using the Get My Payment tool at the IRS website.
