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:

Stanford’s National Humanities Medal Winner Prof. Arnold Rampersad on Langston Hughes & Ralph Ellison

This week on “The Learning Curve," Gerard and Cara talk with Professor Arnold Rampersad, the Sara Hart Kimball Professor Emeritus in Humanities at Stanford University and recipient of the National Humanities Medal for his books including The Life of Langston Hughes and Ralph Ellison: A Biography.

Study Shows the Adverse Effects of Graduated Income Tax Proposal on Small Businesses

The state constitutional amendment promoted by the Massachusetts Teachers Association and the Service Employees International Union to add a 4 percent surtax to all annual income above $1 million will adversely impact a significant number of pass-through businesses, ultimately slowing the Commonwealth’s economic recovery from COVID-19, according to a new study published by Pioneer Institute.

COVID-19 Vaccine Tracker

Pioneer is proud to present a new vaccine tracker, the newest tool in our COVID-19 tracking project. Pioneer distilled the vaccination data down to those who are either fully vaccinated or partially vaccinated, by all the demographic categories published by the DPH. Use the new tool below to compare rates among groups, by municipality and by county. We will update the data every week.

The Washington Post’s Jay Mathews on An Optimist’s Guide to American Public Education

This week on “The Learning Curve," Gerard and Cara talk with Jay Mathews, an education columnist for The Washington Post and author of the recent book, An Optimist's Guide to American Public Education. Jay describes the three key trends in K-12 schooling that he views as cause for hope.

Grading Education in a Pandemic: Survey Finds Teachers Pass, Administrations Fail & Students Incomplete

This week on Hubwonk, Joe Selvaggi discusses a recently released survey from Pioneer Institute and Emerson Polling, "Massachusetts Residents’ Perceptions of K-12 Education During the Covid-19 Pandemic," with Emerson's lead analyst, Isabel Holloway, and Pioneer Institute’s Charlie Chieppo.

Poll Finds Mixed Views About Schools’ Pandemic Performance

A year into the COVID-19 pandemic, Massachusetts residents have mixed opinions about how K-12 education has functioned, but they tend to view the performance of individual teachers more favorably than that of institutions like school districts and teachers’ unions, according to a poll of 1,500 residents commissioned by Pioneer Institute.

Doctor Heal Thyself: Insider’s Prescription For Healthcare Reform

Host Joe Selvaggi talks with surgeon and New York Times bestselling author Dr. Marty Makary about the healthcare reform themes in The Price We Pay, the 2020 Business Book of the Year.  The discussion covers the value of price transparency, provider accountability, and performance information to drive better medical outcomes and improve doctor and patient satisfaction.

New Study Warns Graduated Income Tax Will Harm Many Massachusetts Retirees

If passed, a constitutional amendment to impose a graduated income tax would raid the retirement plans of Massachusetts residents by pushing their owners into higher tax brackets on the sales of homes and businesses, according to a new study published by Pioneer Institute. The study, entitled “The Graduated Income Tax Trap: A retirement tax on small business owners,” aims to help the public fully understand the impact of the proposed new tax.

Dartmouth’s Prof. Susannah Heschel Discusses Rabbi Abraham Joshua Heschel & the Civil Rights Movement

This week on “The Learning Curve," Gerard and Cara talk with Dr. Susannah Heschel, the Eli M. Black Distinguished Professor of Jewish Studies at Dartmouth College, and the daughter of noted 20th-century Jewish theologian and Civil Rights-era leader, Rabbi Abraham Joshua Heschel. They discuss what teachers and students today should know about Rabbi Heschel’s life and legacy.

Study: Graduated Income Tax Proponents Rely on Analyses That Exclude the Vast Majority Of “Millionaires” to Argue Their Case

Advocates for a state constitutional amendment that would apply a 4 percent surtax to households with annual earnings of more than $1 million rely heavily on the assumption that these proposed taxes will have little impact on the mobility of high earners. They cite analyses by Cornell University Associate Professor Cristobal Young, which exclude the vast majority of millionaires, according to a new study published by Pioneer Institute.