Editorial Staff

Public Statement: Extend Massachusetts’ Income Tax Filing Deadline

/0 Comments/in , , , , , /by Editorial Staff
Share on Facebook
Share on Twitter
Share on
LinkedIn
+

Being Consistent with the Extended Federal Deadline Is in the Public Interest

The consequences for the state budget may be significant, but the impact of not providing tax relief consistent with federal actions may be more severe. The Internal Revenue Service extended the income tax return filing deadline from April 15 to July 15.

Taxpayers already hit with declining paychecks and retirement accounts should not bear the additional interest and penalties stemming from an inability to meet the April 15 deadline, especially when their inability to make those filings in a timely way is largely due to compliance with Coronavirus containment strategies promoted by health officials and governments at all levels. Additionally, given the current economic crisis, money that would be going to the state could instead be used for life’s necessities and work to keep the local economy afloat during the extension period until payments are due in July.

Many rely on tax professionals, lawyers, and others to prepare or provide the information necessary to file their tax returns. Often, a taxpayer will compile a “shoebox” of receipts and cancelled checks, which s/he leaves with a local accountant to sort through and create the tax return. That physical process could actually be dangerous in present circumstances.

Massachusetts’ 2019 Form 1, the state’s income tax return form, includes five items that are drawn from the U.S. 2019 1040. Thus, if Massachusetts does not piggyback on the federal postponement, then taxpayers will effectively have to complete the federal return by April 15, which would be a huge disappointment at this point, although any additional federal taxes due could be postponed until July 15. Additionally, having different deadlines for federal and state taxes create significant inefficiencies for individuals and tax practitioners alike who for decades have filed both returns at the same time.

The Internal Revenue Service and the Treasury Department recognized this burden and extended the deadline. They took it a step further, saying first quarter estimated payments normally due on April 15, would be due on July 15th. Additionally, the agency urged those who would be seeking tax refunds to file as early as possible so they can receive the benefit of having more cash on hand as their paychecks erode.

We do not believe that Massachusetts should simply ask individuals to exercise the option of filing for extensions. To file an extension, one must have the means to estimate his or her liability and pay at least 80 percent of it by April 15, and many taxpayers rely on their accountants or other tax professionals to file their extensions, raising many of the same issues noted above.

By not extending the filing deadline, Massachusetts is an anomaly. According to the Tax Foundation, 34 of the 41 states that tax income have extended their deadlines. The Commonwealth should be among them.

Below is a state-by-state guide as of March 25, 2020 courtesy of the Tax Foundation:

Get Our COVID-19 News, Tips & Resources!

  • This field is for validation purposes and should be left unchanged.

Related Posts:

Capturing Voter Intent: What Polling Error Teaches Us About Electoral Trends

0 Comments
/
Join Host Joe Selvaggi and Harvard Professor Chase Harrison as they discuss polling methodology and what errors in 2020 reveal about voting during COVID-19 and changing attitudes toward pollsters.

Pioneer Report Highlights Pre-Pandemic Employment Growth in Massachusetts’ Hospitality & Food Industry

In the lead-up to the COVID-19 crisis, the Massachusetts Hospitality and Food Industry enjoyed generally positive employment growth, according to a new report from Pioneer Institute that draws data from the MassEconomix web tool. Most of the Hospitality and Food Industry employment across the state is concentrated in full-service restaurants and hotels.

Ghost Dance – Native American Heritage Month – Resources for K-12 Education

In Pioneer’s ongoing series of blogs on curricular resources for parents, families, and teachers during COVID-19, this one focuses on: Introducing K-12 schoolchildren to Native Americans in U.S. history.

Targeted government help for small business is needed

0 Comments
/
Covid-19 will frame economic policy discussions for years to come, just as the Great Recession did a decade ago. The economic impact of the pandemic includes widespread job losses, and millions of Americans are at risk of falling into poverty. Covid-19 is also accelerating pre-existing market trends – such as automation and online shopping – and their potentially devastating impact on the thousands of small businesses vulnerable to these market shifts. Will these businesses be able to adapt?

MCAS testing essential to address falling test scores

0 Comments
/
Amid the chaos that was created by schools suddenly being shuttered in March as a result of the COVID-19 pandemic, it made sense to cancel administration of Massachusetts Comprehensive Assessment System (MCAS) tests. But supporters of pending legislation that would place a four-year moratorium on using MCAS as a high school graduation requirement and create a commission to study alternatives to the tests are no longer responding to a crisis; they are using it to advance their anti-reform agenda.

Wall Street Journal Columnist Jason Riley on the 2020 Election, School Choice, & Race in America

0 Comments
/
This week on “The Learning Curve,” Cara and Gerard are joined by Jason Riley, a senior fellow at the Manhattan Institute and columnist for The Wall Street Journal. Jason shares insights on the 2020 election, its implications for the next two years, and assuming Vice President Biden becomes president, how he may govern on K-12 education.

Disputing Democracy – 5 Contentious U.S. Presidential Elections – Resources for K-12 Education

In Pioneer’s ongoing series of blogs, on curricular resources for parents, families, and teachers during COVID-19, this one focuses on: Introducing K-12 schoolchildren to the great, contentious presidential elections in U.S. history.

Pioneer Institute Statement on Governor Baker’s New COVID Restrictions

Read Pioneer Institute's public statement about Gov. Charlie Baker's new executive orders related to the state’s reopening plan that will go into effect on Nov. 6, issued in response to a significant uptick in COVID infections in Massachusetts,

Voting for Health: Party Opinions, Election Results & the Healthcare Policy Implications of Election 2020

0 Comments
/
Join Host Joe Selvaggi as he discusses with Harvard Professor Bob Blendon his New England Journal of Medicine Special Report, "Implications of the 2020 Election for U.S. Health Policy," which covers broad differences in both party’s view of the role of government in health care and what the election results will mean for Americans.

Hockey Sidelined Again

0 Comments
/
After months on the sidelines, youth hockey players across the state eagerly laced up their skates in August. Under current youth and amateur sports guidelines, locker rooms operate at 50 percent capacity, only one spectator should attend per player, and players wear masks on the bench. Unlike in MIAA high school sports, players do not wear facemasks while they play, except during faceoffs.