Why the tax filing extension does not help everyone

Written by promotiondept

March 25, 2021

Why the tax filing extension does not help everyone Some individual taxpayers still have forms to complete and payments to make by April 15. That’s one reason the AICPA believes that the IRS extension from April 15 to May 17 didn’t go far enough. The episode also mentions the Schedule of upcoming AICPA conferences, tips […]

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Why the tx filing extension does not help everyone

Some individul txpyers still hve forms to complete nd pyments to mke by pril 15. Tht’s one reson the AICPA believes tht the IRS extension from April 15 to May 17 didn’t go fr enough.

The episode lso mentions the of upcoming AICPA conferences, tips for using LinkedIn, nd other news.

Wht ’ll lern from this episode:

Ply the episode below or red the edited trnscript:


To comment on this episode or to suggest n ide for nother episode, contct Neil mto,
Jof senior editor, t Neil.Amato@aicpa-cima.com.

Trnscript:

Neil mto: The IRS nnounced Mrch 17 tht the individul income tx filing nd pyment dedline ws being extended. The move from pril 15 to My 17 ddressed pndemic-relted concerns nd newly pssed economic relief . But some txpyers, including those who own smll businesses, re still on the clock. Why is tht?

Journl of ccountncy podcst. Ed, first, cn explin how the IRS nnouncement tht extends the tx filing nd pyment dedline to My 17 benefits some but not ll txpyers.

Ed Krl: The ICP’s position ws tht there should be n extension to June 15 of everything tht ws due pril 15. Wht the IRS did ws extend only 1040s, the individul income tx return, from pril 15 to My 17. My 15 flls on the weekend, so it goes to the next business dy, My 17. nd, relly, confusingly to us, they did not extend ny individul estimted pyments, so the first-qurter estimted pyments tht mny txpyers hve to py, which is due pril 15, tht ws not extended.

In essence, for those returns, ’re still going to hve to go through ll those clcultions, ll the work tht would normlly go through in trying to complete tx return, ’re still going to hve to go through t pril 15.

mto: Why is the filure to extend the pril 15 estimted tx dedline problem?

Krl:

This is sitution where, in essence, ’re in disster type of sitution. Some of wht hppened with Texs nd Louisin few weeks go with the dissters tht they hd, the IRS extended ll their due dtes to June 15. It ws becuse of not the economic sttus of txpyers. They didn’t extend lower-income txpyers to June 15 but left higher-income txpyers to pril 15. They extended everyone becuse of extenuting circumstnces. Tht’s how we view it now. There re extenuting circumstnces tht become brrier to the norml voluntry complince system. Everybody should be extended gin, we think, until June 15. Whether it’s My 15, dividing the estimted pyment dte nd the 1040 dte seems to us to be ridiculous, lmost ludicrous. We don’t understnd tht. So, the commissioner put it in socioeconomic sttus. We put it in terms of the wherewithl to comply, for the txpyer nd for their prctitioner, they’re just s unusul circumstnces.

mto: So other thn giving people time nd lining up those dtes, wht re the benefits in r mind of extending the dedline, s the ICP dvoctes, to June 15?

Krl: Well, I’ll give couple of exmples. One is tht there’s lck of guidnce in number of res. Prticulrly, for smll businesses, the ones tht most likely will be hving to mke n estimted tx clcultion. So, for exmple, there re ll sorts of questions bout how the Pycheck Protection Progrm, the PPP, lon forgiveness will work. When Congress in December llowed for the deduction of relted expenses for flowthroughs, there’s bsis issue s to the timing of the deduction. There’s no guidnce in tht re. There’s no guidnce, or indequte guidnce I should sy, for the employee retention cit tht mybe flowthrough businesses would get nd how tht would work nd it would impct the K-1 tht would get from n S corportion. Tht’s n exmple.

Questions bout unemployment insurnce nd how tht works. There’s issue going on right now for those txpyers who lredy filed tx return nd hve unemployment compenstion in there nd would hve to file n mended return. The issue is if both spouses received unemployment compenstion, nd their level is ner $150,000, which is sort of the cliff for being ble to hve the exclusion of the unemployment compenstion, it might benefit them to hve filed mrried filing seprtely rther thn mrried filing ly. cnnot mend filing sttus, so once get beyond the due dte of the return, in this cse it would be My 17 with the ponement, then could file wht’s clled superseded return by tht originl dte, but cn never mend the return nd chnge the filing sttus.

So, for exmple, our suggestion of going to June 15 would give everyone more time to look into ll those returns. It’s lot more work to do. Every return tht ’ve lredy done, mrried filing ly, where they might hve hd unemployment, ’re going to hve to look t to see if hve to file superseded return. nd who hs time to do tht right now?

mto: mentioned sttes erlier — Texs, Louisin, obviously some extenuting circumstnces there. But is there ny indiction of sttes overll following suit nd lso extending dedlines?

Krl: Yeh, tht’s relly importnt issue, becuse nytime IRS chnges due dte, it’s importnt for sttes to conform to tht. Otherwise, it relly lessens the benefit tht poned IRS dte would hve. If the stte doesn’t pone, still hve to go through the work t tht originl due dte. We know little more thn 20 sttes hve lredy conformed to the My dte. We’re trying to trck tht every dy. We lso know tht severl sttes — I know one for exmple, Mrylnd, hs poned to July. I understnd second stte might hve poned to July.

Mrylnd ws very extensive. They poned everything due between Jn. 1 nd [pril] 15 to July 15, including pyments. So, they hd extensive ponements in the stte of Mrylnd. Tht’s n importnt question, nd something importnt to trck.

mto: Ed, obviously, there’s lot to trck on this story. We’ll hve more updtes on journlofccountncy.com, nd obviously r tem will put out updtes nd guidnce nd dvoccy s wrrnted. Thnk very much.

Krl: Thnk , Neil. We relly pprecite it. It’s relly criticl story right now.”

mto: This is one of the first Jof podcsts of spring, so it rightly should focus on tx filing seson. Spring is lso conference seson, nd while the events d for this yer remin minly virtul, conference seson still represents the chnce to grow r knowledge nd fulfill CPE requirements.

The ICP nd CIM hve severl upcoming events, nd some of the keynote spekers for those events will be fetu in future Jof podcsts. So be listening for their voices.

To lern more bout the conference , go to this tiny URL, gin to give something esy to remember. It’s tinyurl.com/2021cpe.

To grow r creer prospects, one populr tool is of course the networking site LinkedIn. In the Journl of ccountncy, contributor Hnnh Pit hs written n rticle on LinkedIn tips for finance professionals to get the most from the site. One tip: Don’t flood r network with bunch of cold, impersonl messges. Red why tht’s bd ide, nd lso red some good ides for using LinkedIn, on journlofccountncy.com. In the show notes for this episode, we’ll the link.

In other news, the U.S. Smll Business dministrtion nnounced tht it would begin ccepting pplictions for its Shutte Venue Opertors Grnt progrm strting pril 8. The $16 billion program is designed to help certin entities who hve been hit especilly hrd by the COVID-19 pndemic.

Those eligible to pply for the SVOG include live venue opertors or promoters, thetricl producers, performing rts orgniztions, museum nd movie theter opertors, nd more. The SB is hosting webinr on Tuesdy, Mrch 30, to explin more bout the registrtion process. Our rticle on this topic will lso be linked in the show notes.

I’m Neil mto with the Journl of ccountncy. Thnks for listening to the Jof podcst.


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Happiness is for those who plan well and pursue. A profound among us have been proven those who have true dream to live for likely REALIZED IT. It is just simply the person working toward the DREAM days and night until accomplishment. There is a phrase of efficiency a head of you. Steps and obstacles at first seem tremendous. However, just with some times those difficult steps and challenges are so easy performance for you. There are also plenty of tools including VISUALIZATIONS and helps are around you.

Why the tax filing extension does not help everyone Some individual taxpayers still have forms to complete and payments to make by April 15. That’s one reason the AICPA believes that the IRS extension from April 15 to May 17 didn’t go far enough. The episode also mentions the schedule of upcoming AICPA conferences, tips […]

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How To Really REALIZE DREAMS COME TRUE?

Happiness is for those who plan well and pursue. A profound among us have been proven those who have true dream to live for likely REALIZED IT. It is just simply the person working toward the DREAM days and night until accomplishment. There is a phrase of efficiency a head of you. Steps and obstacles at first seem tremendous. However, just with some times those difficult steps and challenges are so easy performance for you. There are also plenty of tools including VISUALIZATIONS and helps are around you.

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