WASHINGTON, D.C. – Today Reps. Jamie Raskin (MD-08) and Bill Pascrell Jr., Chairman of the House Ways and Means Subcommittee on Oversight, led 102 House Members in urging the Internal Revenue Service (IRS) and the U.S. Treasury Department to extend the April 15, 2021 federal tax filing and payment deadline. The request cones in the wake of recent significant changes to federal tax law included in the American Rescue Plan, which was just signed into law last week.
The Members wrote: “The American Rescue Plan Act of 2021, signed into law by President Biden on March 11, 2021, contained a provision excluding from income the first $10,200 of unemployment benefits received in 2020 for those with an adjusted gross income under $150,000. The IRS will need to take action to address such changes in the tax law, and taxpayers will need additional time to fully understand how these changes affect their tax liability. Further, taxpayers and tax return preparers are awaiting guidance from the IRS regarding these recent tax changes and are still waiting for some IRS forms to be made available for electronic filing.”
Compounding these developments, the IRS began the 2020 filing season nearly three weeks later than usual, creating less time for constituents and businesses to file as they grapple with the recent changes. Compared with this time last year, 27% fewer tax returns have been filed already and 31% fewer returns have been processed by the IRS.
The Members continued: “With limited in-person tax assistance at local tax preparation clinics, libraries, and community centers, tens of millions of our constituents are facing new challenges and the same logistical hurdles as last year.”
Last year, after bipartisan calls from Rep. Raskin and other Representatives for an automatic extension, the Treasury Department announced that the deadline would be extended by 90 days to July 15, 2020.
Last week, Maryland became the first state in the nation to extend its filing deadline when Comptroller Peter Franchot announced a 90-day extension, from April 15 to July 15, 2021, to give residents more time to file and pay their state income taxes because of recent state and federal COVID-19 related changes to the tax code.
In addition to Rep. Raskin and Pascrell, the letter is also signed by Reps. Adams, Axne, Bacon, Bass, Beyer, Blumenauer, Bonamici, Bowman, Boyle, Brownley, Cárdenas, Case, Chu, Cicilline, Cohen, Connolly, Cooper, Courtney, Craig, Crow, Davis (Danny), Dean, DeFazio, DeSaulnier, Dingell, Eshoo, Espaillat, Evans, Fitzpatrick, Gallego, García ("Chuy"), Gomez, Gottheimer, Grijalva, Hastings, Hayes, Higgins, Horsford, Katko, Khanna, Kildee, Kirkpatrick, Lamb, Larson, Lawrence, Lawson, Lee (Barbara), Lee (Susie), Levin (Andy), Lieu, Lowenthal, Luria, Lynch, Malinowski, Manning, Matsui, McCollum , McGovern, McNerney, Meng, Mfume, Morelle, Moulton, Neguse, Norton, O’Halleran, Ocasio-Cortez, Omar, Pallone, Panetta, Pappas, Pascrell, Payne, Perlmutter, Peters, Pingree, Posey, Raskin, Ross, Roybal-Allard, Ruppersberger, San Nicolas, Sarbanes, Schakowsky, Schrader, Sewell, Sherrill, Sires, Smith (Adam), Soto, Spanberger, Strickland, Suozzi, Thompson, Titus, Tlaib, Tonko, Torres, Trone, Velázquez, Watson Coleman, Welch, Wild, Williams (Nikema).
A copy of today’s letter can be found here.