IRS expected to delay tax filing deadline

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The IRS is expected to extend the tax filing season by a month, according to a source familiar with the decision.

The agency has yet to announce that it was pushing the filing deadline back to around May 15, but could do so as soon as this afternoon. That would mark the second consecutive year that the IRS has had to prolong the filing season for reasons related to the coronavirus pandemic, with Tax Day eventually falling on July 15 last year instead of the traditional April 15 date.

A number of lawmakers and outside groups have been urging the IRS to give taxpayers and practitioners more breathing room — especially after the most recent coronavirus relief measure changed tax policy for 2020 in the middle of the filing season by exempting just over $10,000 worth of unemployment benefits from taxation for many recipients.

The IRS had been saying that pushing back the filing deadline would make life more difficult both for the agency and taxpayers. Advocates for state tax administrators have argued those problems would trickle down to the states as well.

Bloomberg News first reported the expected delay.

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