Despite the recent IRS announcement extending the filing and payment deadline for the 2021 tax season from April 15 to May 17, the AICPA says the measure will still leave millions of taxpayers facing the original April 15 date.
Primarily at issue, AICPA says, is the fact that the relief does not include estimated tax payments that are due on April 15, since the IRS extension does not extend to millions of small business owners and individuals who pay estimated taxes, trust income tax payments and return filings or corporate income tax payments and return filings. Noting that more than 9.5 million individual returns filed for the 2018 tax year included estimated payments, AICPA says failure to include these estimated payments nullifies any benefit of a postponement since the tax return work has to be done to calculate estimated payments.
The association also believes an additional month should be added to the proposed extension. In letters to the U.S. Department of the Treasury and the IRS, AICPA has also extolled the benefits of extending the payment and filing deadline for all taxpayers to June 15.
“While we appreciate the IRS’ recognition that a filing deadline postponement is indeed necessary, the announcement is far too selective in who is receiving relief,” says AICPA president and CEO Barry Melancon. “Extending all tax returns due to June 15 exhibits an understanding of the IRS’ impact on the American public.”