AICPA Update: Congress’ Call for IRS to Extend Deadline for Q1 Estimated Taxes Intensifies
Washington, D.C. (April 1, 2021) – As the April 15th deadline draws closer, the American Institute of CPAs (AICPA) has been joined by several influential stakeholders in calling for the Department of the Treasury and the Internal Revenue Service (IRS) to reconcile the deadline postponement to include quarterly estimated payments. This week, that call was echoed by 60 Members of Congress in a bipartisan letter to IRS Commissioner Charles Rettig.
The letter, led by Representative Lloyd Smucker (R-PA), highlights many of the circumstances that have created insurmountable challenges for small business owners and self-employed workers. It also urges Commissioner Rettig to provide relief to these taxpayers by extending the tax filing deadline for first quarter estimated payments.
“Contrary to your claim, we have heard from numerous struggling small businesses in our Congressional Districts that do not follow this practice and will not be able to file on time. Many small and medium sized businesses pay their quarterly estimated taxes based on their returns from the previous year. If these businesses do not file until May 17, 2021, they will not know what their estimated payment liability will be for this filing year,” the letter states.
“We are grateful to Representative Smucker and the other 59 Members of Congress who signed this letter, advocating on behalf of the small businesses and self-employed within their districts,” said AICPA vice president of taxation, Edward Karl, CPA, CGMA. “The consequences of the IRS’ decision to exclude estimated payments will have a detrimental impact on millions of taxpayers who file quarterly estimated taxes, many of whom have already suffered tremendously during this pandemic.”
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 431,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession.
Feb 16, 2021: The AICPA sent a letter to the Department of the Treasury and the IRS calling attention to the hardship that millions of taxpayers and tax practitioners are facing while making good faith efforts to comply with their tax obligations. The AICPA called for relief from underpayment and late payment penalties for the 2020 taxable year.
Feb 24, 2021: The AICPA sent a letter urging the Department of the Treasury and the IRS to provide taxpayers with more certainty and stability by announcing any pending tax filing and payment deadline postponements. Additionally, the AICPA called for Treasury and the IRS to provide underpayment and late payment penalty relief, delay collection activities and expand the temporary e-signature relief to the millions of taxpayers affected and working through the challenges created by the COVID-19 pandemic.
March 2, 2021: A subsequent statement released by the AICPA again urged action by Treasury and the IRS and reiterated the need for filing and payment extension and urgency of doing it now.
March 4, 2021: The AICPA sent a letter to the Department of the Treasury and the IRS calling for the extension of the filing and payment deadline for the 2020 tax year to June 15, 2021.
March 16, 2021: The AICPA released a statement addressing criticism of a deadline postponement and reiterating the need for a payment and filing deadline extension to June 15th.
March 17, 2021: The AICPA released a statement following the announcement by the IRS that it would extend the filing and payment deadline for some – but not all – taxpayers for the 2021 tax season from April 15th to May 17th.
March 18, 2021: The AICPA released a statement in response to testimony provided by Commissioner Rettig before the House Ways & Means Oversight Subcommittee.
March 25, 2021: The AICPA and the NAEA sent a letter to the Department of the Treasury and the IRS expressing disappointment in the announcement to extend the filing deadline – but not the estimated payment deadline – to May 17th, which excludes many taxpayers and arbitrarily discriminates against different types of taxpayers.
Veronica L. Vera