Americans will be getting extra time to prepare their taxes. The Internal Revenue Service says it’s delaying the traditional tax filing deadline from April 15 until May 17.
The IRS announced the decision Wednesday and said it would provide further guidance in the coming days. The move provides more breathing room for taxpayers and the IRS alike to cope with changes brought on by the pandemic.
Taxpayers do not need to take any action to take advantage of the new deadline. Those who need more time beyond May 17 can request an extension until October 15.
The new deadline does not apply to estimated tax payments that are due on April 15; those remain due by that day.
The decision to extend the deadline comes after an intense year for the chronically underfunded IRS. The pandemic hit in the middle of last year’s tax filing season, setting the agency back in terms of processing. The IRS has also been a key player in doling out government relief payments, and is currently helping to send out the third round of payments in the middle of the current tax filing season.
Additionally, the extension gives the IRS time to issue guidance on recent tax law changes. The American Rescue Plan excludes the first $10,200 of unemployment benefits from federal taxes for those making less than $150,000.
The IRS must issue guidance for taxpayers and tax preparers alike as millions of returns already filed likely do not account for this change.