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:

COVID-19 Roundup from Pioneer: Antibodies & immunity; Talking about WHO; Telecommuting Survey Results; Mapping COVID – Update; & more!

0 Comments
/
Pioneer staff share their top picks for COVID-19 stories highlighting useful resources, best practices, and questions we should be asking our public and private sector leaders.

Even for the most remote part of Massachusetts (Franklin County), it’s far from business as usual

0 Comments
/
The Connecticut River valley is home to some of the most productive…

Hubwonk Ep. 8: Who is WHO? COVID-19, Massachusetts, and the unhealthy World Health Organization

0 Comments
/
Hubwonk host Joe Selvaggi and Pioneer Healthcare Senior Fellow Josh Archambault are joined by Hoover Institution’s Dr. Lanhee Chen to discuss the role that the World Health Organization (WHO) plays, what dysfunction may have contributed to the scale of the COVID-19 pandemic, and what steps can be taken to bring back transparency and trust.

Study: Safely Reopening Office Buildings Will Require Planning, Innovation

0 Comments
/
Safely bringing employees back into workplaces presents a significant challenge for employers located in office buildings, particularly when it comes to elevator operations and building entry and exit.  To address the challenge, managers must develop plans to control the flow of workers, according to a new study published by Pioneer Institute.

Acclaimed Poet & Former NEA Chairman Dana Gioia on Poetry & Arts Education

0 Comments
/
This week on “The Learning Curve,” Cara and Gerard are joined by Dana Gioia, a poet, writer, and the former Chairman of the National Endowment for the Arts, to talk about why the arts are so pivotal to the intellectual and civic development of America’s K-12 schoolchildren.

38.8 percent of the Massachusetts workforce and 28.3 percent of the U.S. workforce have filed unemployment claims over the past ten weeks.

0 Comments
/
Data released today by the U.S. Department of Labor shows that 38.8 percent of the Massachusetts workforce and 28.3 percent of the U.S. workforce have filed unemployment claims since the COVID-19 unemployment surge began ten weeks ago.

Once anchored by higher education, Hampshire County, MA finds itself out of work after a cancelled semester

0 Comments
/
The 38,000 college and university students at the Five College…

In Hampden County, COVID-19 exacerbates a stark employment divide between urban and rural areas

0 Comments
/
Hampden County, Massachusetts, home of Western New England’s…

Study: Officials Must Address Basic Questions to Improve Public School Computer Science Education

Even as the COVID-19 pandemic has further transitioned education towards electronic devices, computer science education in K-12 public schools around the country faces a number of daunting challenges, according to a new study published by Pioneer Institute.

Hubwonk Ep. 7: Covid Testing: What went wrong, where we are & when we’ll get closer to normalcy

0 Comments
/
https://www.podtrac.com/pts/redirect.mp3/chtbl.com/track/G45992/feeds.soundcloud.com/stream/828394294-pioneerinstitute-hubwonk-ep-7-covid-testing-what-went-wrong-where-we-are-when-well-get-closer-to-normalcy.mp3 Join…