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:

“Double, Double Toil and Trouble” – 15 Halloween Resources for K-12 Students

In Pioneer’s ongoing series of blogs here, on curricular resources for parents, families, and teachers during COVID-19, this one focuses on: Introducing K-12 students to the history behind Halloween.

Staving Off Disaster: Lessons from Covid Applied to the Epic Battle Against Drug Resistant Microbes

0 Comments
/
Join Hubwonk host Joe Selvaggi and Pioneer Institute’s Bill Smith as they discuss with inspirational public health advocate Gunnar Esiason the findings of his latest white paper, "Antimicrobial Resistance: Learning From the current health crisis to inform another."  The episode looks at the challenges to global health presented by evolving drug resistant diseases and how the lessons learned from COVID-19 could potentially save millions of lives.

The Commonwealth of Health -Massachusetts’s Great Medical Innovations – 15 Resources for High School Students

In Pioneer’s ongoing series of blogs here, on curricular resources for parents, families, and teachers during COVID-19, this one focuses on: Introducing high school students to great medical innovations from Massachusetts.

NCTQ’s Kate Walsh on the Crisis in K-12 Teacher Prep, Quality, & Evaluation

0 Comments
/
This week on “The Learning Curve,” Cara and Gerard are joined by Kate Walsh, president of the National Council on Teacher Quality. They discuss the qualifications of those who enter the teaching profession, explore teacher preparation, and key differences between teacher preparation, accreditation, and job prospects in the U.S. and other countries. They also speculate about what a Biden presidency might mean for K-12 education policymaking, and discuss how to diversify the teaching pipeline.

The Republic of Gadgets – America’s Great Inventors – 25 Resources for K-12 Education

Understanding the enduring public and private benefit that great inventors and their contraptions have made to our civilization is to better appreciate the connections between human necessity, creativity, and ingenuity. Yet, in American K-12 education very little focus is placed on studying who America’s great inventors were and the central role they’ve played in shaping our republic of gadgets. We’re offering a variety of links on the topic for parents, teachers, and schoolchildren to enjoy and better realize authentic innovators.

Cheryl Brown Henderson, Daughter of Lead Plaintiff in Brown v. Board of Ed., on Race & Schooling

0 Comments
/
This week on “The Learning Curve,” Cara and Gerard are joined by Cheryl Brown Henderson, president of the Brown Foundation for Educational Equity, Excellence, and Research. She shares her experience as the daughter of the lead plaintiff in the landmark U.S. Supreme Court case, Brown v. Board of Education of Topeka, Kansas, and thoughts on how the historic decision contributed to advancing civil rights in our country.

The Houses of Great American Writers – 25 Resources for K-12 Education

According to the Brookings Institution research, teaching great fiction is declining across America’s K-12 education system, so we’re offering resources to help parents, teachers, and schoolchildren to better appreciate great American writers and the places where they wrote.

Getting Nursing Home Care Right

Pioneer Institute has long recognized that seniors deserve the best of care and that innovative policy solutions are necessary to ensure that this population enjoys a high quality of life in their later years. In the 1990s, early 2000s and most recently in 2017, the Institute dedicated Better Government Competition topics to policy issues related to aging in America. Our goal each time was to find solutions and to take advantage of new innovations that would improve the quality of life and care for the elderly.

Harvard PEPG’s Prof. Paul Peterson on Charter Schools, Digital Learning, & Ed Next Polling

This week on “The Learning Curve,” Cara and Gerard are joined by Paul Peterson, the Henry Lee Shattuck Professor of Government and Director of the Program on Education Policy and Governance at Harvard University.

Small Business Life Support: Policy Relief for Firms Sickened by COVID?

0 Comments
/
Host Joe Selvaggi talks with Pioneer Institute’s Andrew Mikula and Retailers Association of Massachusetts' Jon Hurst about the state of small business in Massachusetts six months into the pandemic.