The Virginia Society of CPAs (VSCPA) requests that Representative Wittman sign onto the letter by Rep. Lloyd Smucker (PA-11) calling on the IRS to align the first quarter tax payments deadline to May 17th with the extended tax filing deadline.
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. In fact, VSCPA members have stated the exclusion of estimated payments makes the extension practically useless.
Please sign the letter being circulated now by Rep. Lloyd Smucker, which calls on IRS Commissioner Rettig to align the first quarter payments deadline to May 17th, along with the extended tax filing deadline. Extending the payments deadline would ease the impact of the pandemic on taxpayers — especially small businesses — and the tax practitioners who advise them.
If your office has any questions, or would like to sign onto Rep. Smucker’s letter, please contact his Senior Legislative Assistant: Chris Eddowes ([email protected]).
Thank you for your work to guide the country through these difficult days.
Emily Walker, CAE
Vice President, Advocacy
Virginia Society of CPAs