AUGUSTA, Maine — Editor's Note: The video above aired on March 3, 2021.
On Wednesday, the Internal Revenue Service (IRS) said it’s delaying the traditional tax filing deadline from April 15 to May 17, allowing the IRS and American taxpayers more breathing room to cope with changes brought on by the coronavirus pandemic.
“The IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS Commissioner Chuck Rettig said in a statement.
This extension, however, only applies to federal taxes. It’s up to state governments to align their deadlines with the federal government’s.
Maine Senate Republicans are calling on Gov. Janet Mills to do just that.
On Thursday, Senate GOP members sent out a release urging Mills to extend the state tax filing deadline to May 17 to conform with the federal extension.
“Many Maine citizens and businesses need time to accurately prepare their filings to comply with the many changes that have recently been passed with the State’s budget in addition to the numerous federal changes,” Senate Republican Leader Jeff Timberlake and Assistant Senate Republican Leader Matt Pouliot said in a release. “Pushing the tax deadline out to May 17th will allow people and businesses to gather all pertinent information and file accurate tax returns.”
Lindsay Crete, a spokesperson for the Governor's Office, told NEWS CENTER Maine Thursday in response to the Republicans' release that they are "glad to see that Republicans agree with the Governor’s assessment that moving the deadline is appropriate," which Crete said Mills had planned to do.
Crete said an announcement from the Governor's Office on the state tax deadline is expected "shortly."
The IRS’s decision to extend the federal tax filing deadline comes after an intense year for the chronically underfunded IRS. The pandemic hit in the middle of last year's tax filing season, setting the agency back in terms of processing. The IRS has also been a key player in doling out government relief payments and is currently helping to send out the third round of payments in the middle of the current tax filing season.
Additionally, the extension gives the IRS time to issue guidance on recent tax law changes. The American Rescue Plan excludes the first $10,200 of unemployment benefits from federal taxes for those making less than $150,000.
“Never before has the law changed so substantially in the middle of tax filing season," Patrick Thomas, director of Notre Dame Law School’s Tax Clinic, said in a statement.
The IRS continues to urge people to file as soon as possible, particularly those who are owed refunds. In some cases, filing will help taxpayers more quickly get any remaining relief payments they are entitled to.
The Maine Legislature Senate Majority Office did not immediately respond for comment.