Tax groups urge IRS to consider penalty relief, deadline extension
The American Institute of CPAs has written 2 letters to IRS requesting underpayment, late payment penalty relief
The truncated 2021 tax season is expected to be another challenging year for payers and preparers, and various groups are already lobbying the IRS to provide avenues for relief.
The American Institute of CPAs (AICPA) has written two letters to the IRS requesting underpayment and late payment penalty relief.
The group wrote its most recent letter this week, requesting clarification on any postponements or extensions in deadlines be announced by March 1.
The AICPA noted that there have been questions over whether the tax deadline, currently set for April 15, might be pushed if Congress approves another round of economic impact payments.
It is requesting penalty relief for those who pay at least 70% of the tax due for the current year.
REMOTE WORK AND DOUBLE TAXATION: WHAT YOU NEED TO KNOW THIS TAX SEASON
Meanwhile, the National Association of Tax Professionals wrote a separate request to the IRS for an automatic tax-filing extension because preparers are still waiting on guidance for a number of issues.
“Without this, returns will be filed inaccurately and incompletely, and ultimately there will be a need for more amended returns to be prepared,” NATP Executive Director Scott Artman said in a statement. “This not only increases the work for the preparer who is already dealing with a compressed tax season but will also result in additional expense to the taxpayers who will have to pay to amend their returns.”
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Last year, the tax deadline was extended until July 15.
Some members of the House Ways and Means Committee also requested an extended deadline for the current tax year due to COVID-19 related complications and an existing backlog at the IRS from last year.
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On top of a shortened season and people filing to reconcile their economic impact payments, many taxpayers may face filing challenges depending on their remote work situation. People may be required to file two state returns this year, and some might even face double taxation.