Is the IRS Extending the April 15 Tax Deadline to May 17?

The Internal Revenue Service (IRS) is planning a potential extension of the April 15 tax filing deadline to May 17, providing taxpayers an additional month to file their returns and make any necessary payments. Two senior House Democrats, House Ways and Means Chair Richard Neal (D-MA) and Representative Bill Pascrell (D-NJ), have confirmed this extension in a statement.

Reasons for the Extension

The delayed filing deadline is seen as a necessity in a time of unprecedented crisis, as stated by Neal and Pascrell. The IRS and Treasury have not yet responded to requests for comment, and White House press secretary Jen Psaki indicated that the change has not been 'finalized' yet.

Conditions for an Extension

For most taxpayers who need extra time, the IRS allows for a three-month extension, which is routinely granted. If you wish to extend your filing period further, you must have a compelling reason to do so.

Previous Extensions

For the 2019 tax year, the IRS previously extended both payment and tax return deadlines from April 15 to July 15, 2020. This extension was a one-time event and returns with an extended due date for 2019 continue to be due on October 15, 2020. While future tax filing deadlines will revert to normal, the current situation remains subject to change during the ongoing pandemic.

What Should You Do?

As of now, no extension has been officially announced. However, if you feel you cannot meet the current April 15 deadline, your best bet is to file for an extension. Keep in mind that an extension only delays the filing period but does not extend the time to make any required tax payments.

Potential Future Developments

There is certainly a possibility of further measures. Members of the House Ways and Means Committee have sent a letter to IRS Commissioner Charles Rettig, asking for an update on how the coronavirus is impacting the filing season and noting that the IRS has the authority to extend the deadline.

Given the current unpredictable nature of the pandemic, taxpayers should stay informed and prepared for any changes. Stay updated on the latest developments from the IRS and other relevant tax authorities to ensure compliance and avoid penalties.