The Internal Revenue Service (IRS) announced this week that taxpayers will have the option to file and pay for their 2020 federal income taxes by May 17 instead of the standard April 15 deadline.

In a statement on Wednesday, IRS Commissioner Chuck Rettig said the decision is an attempt by the U.S. government’s taxing authority to reduce the burden on individuals and business owners that continue to feel the impact wrought by the pandemic.

"This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities," said Rettig.

The decision means taxpayers will have the option of filing their taxes on May 17 without incurring penalties. Additionally, all 2020 federal tax payments can be made by May 17 without penalties or interest. Previously, the IRS set April 15 as the deadline for tax filings and payments.

To be clear, the IRS decision only impacts federal tax filings. As of this writing, state taxing authorities, including those in New York State and New Jersey, haven’t announced whether they will still require taxpayers to file their state taxes on April 15 or if they can delay their filings to May 17. However, we fully expect them to follow the IRS’ lead and will keep you updated on when the changes are made.

"Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds,” adding Rettig. “Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to."

Indeed, all Perlson LLP clients are still encouraged to file their taxes by April 15, despite the new regulations. Those who are receiving a refund will get those refunds soon after filing, so you’re encouraged to provide your tax information as soon as possible, so we can prepare your returns and e-file them with the taxing authorities.

It’s also worth noting that if you have a tax payment due, we can still file your payments by April 15 and you will not need to make a payment until May 17.

Therefore, we encourage all of our clients to provide us with all of their tax materials as soon as possible, so we may prepare their returns. And as always, we will provide any updates from taxing authorities as new measures are announced.

If you have any questions or would like to discuss your tax matter with a Perlson LLP professional, please don’t hesitate to call us at 516-541-0022.