Rep. Smucker Introduces Legislation to Provide Small Businesses Tax Extension
Washington- Today, Rep. Lloyd Smucker is introducing legislation to provide small businesses with a commonsense extension of the first quarter estimated tax payment deadline to May 17, 2021, to align it with the new individual tax filing date.
Small businesses make estimated tax payments based on their previous year’s tax filing. By requiring the first quarter estimated payments before some small businesses may have filed their annual taxes, under or over-payment of their estimated tax liability could result in additional penalties and interest. Rep. Smucker’s legislation would align these two deadlines, preventing unnecessary hardship to small businesses still recovering from the effects of the COVID-19 pandemic. The Internal Revenue Service (IRS) provided this flexibility to individuals and businesses last year.
“It is disappointing that the IRS is failing to provide our nation’s small businesses, many of whom are still recovering from the COVID-19 pandemic, with this commonsense flexibility of an aligned deadline for the filing of individual taxes and the first quarter payment deadline. This decision will create completely unnecessary headaches for many small businesses. As a small business owner myself, decisions like this from the IRS only add to the head-scratching frustration that entrepreneurs experience too often with the federal government. A global pandemic is not the time for a punitive approach to small businesses, the backbone of our communities. I urge the IRS to make this commonsense change without delay and am thankful for the broad support for this legislation,” said Congressman Lloyd Smucker.
“We are grateful to Representative Smucker and the other Members of Congress who are 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.”
Last week, Rep. Smucker led a bipartisan letter from 60 Members of Congress to IRS Commissioner Rettig requesting an extension of the federal tax filing deadline for first quarter estimated tax payments to May 17, 2021. Rep. Smucker previously questioned Commissioner Rettig during a Ways & Means Oversight Subcommittee hearing in March.
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