TSCPA News

Limited Tax Extensions Result in Call to Action

March 19, 2021

Limited Tax Extensions Result in Call to Action

 After the IRS announced the postponement of the tax deadline for all individual tax returns for the 2021 tax season from April 15 to May 17, many CPAs across the country voiced their disappointment that the relief excluded estimated tax payments that remained due on April 15. 

 In a statement issued March 17, 2021, AICPA President and CEO Barry Melancon, CPA, CGMA said, “While we appreciate the IRS’ recognition that a filing deadline postponement is indeed necessary, the announcement is far to selective in who is receiving relief.  In fact, the taxpayers who are most likely to benefit from this additional time are taxpayers who are able to meet the original filing deadline.”

 The IRS extension also does not include those who pay trust income tax payments and return filings on Form 1041 or corporate income tax payments and return filings on various Forms 1120.

 If you want broader tax extension relief, please take action today by using the information below to contact your Representative and Senators.

Contact your Members of the House and Senate

Visit www.congress.gov

On the right side of page use “Contact Your Member” feature

Email/Call your two Senators and Representative:

  • Tell them the delay ignores more than 9.5 million taxpayers with estimates.
  • In particular, this impacts struggling small business owners

Example Phone Conversation

  1. Tell the office who you are:  
    • “I’m a voting constituent from [city you live in]”
    • Tax preparer who works with struggling small business clients
  2. Share your personal story
    • Your pandemic experience (filing, working with clients, signatures)
    • Your experience with PPP workload
    • IRS service issues you’re experiencing
  3. Make your ask
    • Extension to June 15 is the best option
    • If bound to May 17, make that the date for ALL tax return and payment due dates
    Example Email Letter (Please add your personal/unique story)

    Dear Representative/Senator NAME:

    Congress must act immediately to help taxpayers and ask the IRS to move all tax payment and filing deadlines to June 15th.

    Unfortunately, the IRS’ recent announcement that it would extend the tax filing and payment deadline from April 15th to May 17th benefits some – but not all – taxpayers for the 2021 tax season.

    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. In fact, the taxpayers who are most likely to benefit from this additional time are those who are able to meet the original filing deadline.

    The IRS’ failure to include estimated payments in its decision hurts taxpayers because so much tax return work has to be done to calculate estimated payments. More than 9.5 million individual returns filed for the 2018 tax year included estimated payments. The IRS’ selective decision unfortunately creates more bureaucracy and confusion and is out of sync with the real-world stresses faced by taxpayers, tax practitioners and small businesses.

    The benefits of extending the payment and filing deadline to June 15th for all taxpayers are many. Doing so would ease the impact of the pandemic on taxpayers – especially small businesses – and the tax practitioners who advise them.

    Thank you for your work to guide the country through these difficult days.