Washington, D.C. – A bipartisan group of senators serving on the Senate Finance Committee are calling on the Internal Revenue Service (IRS) to move the first quarter estimated tax payment deadline to May 17, 2021.
In a letter to IRS Commissioner Charles Rettig, U.S. Senators Pat Toomey (R-Pa.), Maria Cantwell (D-Wash.), Steve Daines (R-Mont.) and Ben Cardin (D-Md.), request that the IRS use its authority to move the first quarter estimated tax payment deadline to May 17, 2021 – which is in line with the recent extension for the individual income tax return deadline.
The senators write as follows:
For tax year 2020, the Treasury Department and Internal Revenue Service (IRS) automatically extended the filing and payment deadline for individual income tax returns from April 15, 2021 to May 17, 2021. However, this decision does not benefit all individual taxpayers. Specifically, self-employed individuals and those with pass-through income, many of whom are small business owners, are still required to file first quarter estimated tax payments on April 15, 2021.
In its decision to extend the individual filing and payment deadline, the IRS acknowledged the 2021 tax filing season’s unusual circumstances. We appreciate this postponement. However, not including first quarter estimated payments in the deadline extension is a mistake. To calculate quarterly estimated tax payments, taxpayers and practitioners utilize prior year tax return calculations. Therefore, the differing deadlines create an unnecessary burden for those required to make estimated tax payments.