Despite the delay, millions of people still face an April 15 tax deadline
The Internal Revenue Service tax deadline extension only affected year-end returns. It did not allow any additional time for estimated payments, as it did in 2020.
About 6% of individual declarants make quarterly payments. They are a dreaded part of business for the self-employed, sole proprietors and workers in concert. Every three months, people who earn money that is not subject to withholding – which can range from working clients to income from a rental property – must make estimated payments on that income. These can range from a few hundred dollars to several thousand.
These are the same groups that have been hit particularly hard by the pandemic, and many are struggling financially. Many have applied for Paycheck Protection Plan (PPP) or Economic Impact Disaster loans.
There is hope for self-employed workers who fear this deadline. A bipartisan group of 60 members of Congress sent a letter to the IRS urging it to move the deadline for estimated tax payments for the first quarter to May 17.
This follows a similar call from the American Institute of Certified Public Accountants and the National Association of Enrolled Agents, who said failure to move the estimated tax deadline “ignores the challenges that many small businesses and businesses face. other taxpayers suffered as a result of the pandemic “.
The IRS has not commented on the claims.
This story was originally featured on Fortune.com