Internal Revenue Service (IRS)

IRS tax payment extension to benefit ‘some but not all’ says AICPA

In letters to the department of the treasury and the IRS, AICPA has emphasized that the benefits of extending the payment and filing deadline to June 15th ‘would ease the impact of the pandemic on taxpayers’

The Internal Revenue Service (IRS) has announced that it will extend the filing and payment deadline for some but not all taxpayers for the 2021 tax season from 15 April to 17 May 2021.

In letters to the department of the treasury and the IRS, AICPA has emphasized that the benefits of extending the payment and filing deadline to 15 June 2021 “would ease the impact of the pandemic on taxpayers” – especially small businesses – and tax practitioners and help many states maintain revenue levels within their current fiscal years.

Barry Melancon, AICPA president and CEO said that while the group appreciates the IRS’ recognition that a filing deadline postponement is necessary, “the announcement is far too selective in who is receiving relief”.

According to the IRS, the relief does not include “estimated tax payments” that are due on April 15th and that the extension does not extend to the millions of small business owners and individuals who pay estimated taxes.

Melancon continued: “It is commendable that the IRS wants to demonstrate a return to normalcy. However, the IRS, through no fault of their employees, is seeing significant backlogs, inundated phone lines, unopened mail by the millions and systems sending out unwarranted notices.

“Extending all tax returns due to June 15th exhibits an understanding of the IRS’ impact on the American public.This selective decision by the IRS unfortunately creates more bureaucracy and confusion and is out of sync with real world stresses that taxpayers, tax practitioners and small businesses are dealing with.”

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