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It makes perfect sense for the IRS to push back the April 15 filing deadline for tax year 2020, to May 17. Many changes have just been enacted under the $1.9 trillion American Rescue Plan Act, such as no federal taxation on the first $10,200 of unemployment benefits for those making less than $150,000.
Not only is the IRS now hustling to issue guidance for taxpayers and tax preparers — millions of returns already have been filed — it also is working to push out COVID stimulus checks. The new deadline gives the IRS and taxpayers alike some breathing room. Let’s see if Hawaii’s Tax Department follows suit and extends the state’s April 20 deadline.