The Internal Revenue Service is extending the tax deadline by a month, according to reports Wednesday.
The IRS has not put out a public statement yet but Bloomberg, The Wall Street Journal, CNBC and The Washington Post are reporting the new deadline is expected to be in mid-May.
The delayed filing deadline comes as the IRS is dealing with a massive backlog that has left it unable to fully process roughly 24 million tax filings from individuals and businesses since the 2019 tax year.
The American Institute of CPAs was calling for extending the filing and payment deadline for the 2020 tax year until June 15.
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Democrats on the House Ways and Means Committee already requested that IRS Commissioner Charles Rettig extend the tax return filing season beyond April 15.
Nearly 7 million tax filers who await their tax refunds face significant delays this tax season as the IRS rushes to send out stimulus checks to millions of struggling Americans who have faced economic hardship in the coronavirus pandemic. The agency is grappling with staffing and outdated IT systems at a time when it’s also implementing sweeping tax code changes from the COVID-19 relief packages.
Tax season was del from the start as the IRS began to accept and process tax returns Feb. 12, which was a two-week delay.
The latest $1.9 trillion stimulus package creates a new tax break for tens of millions of workers who received unemployment benefits last year after businesses were forced to close and lay them off during the coronavirus pandemic.
As part of the American Rescue Plan, many taxpayers wouldn’t be required to pay taxes on up to $10,200 in unemployment benefits received last year. The exclusion is up to $10,200 of jobless benefits for each spouse for married couples.
IRS officials said Monday that more guidance will be available soon, for example, about what taxpayers need to do if they’ve already filed a federal income tax return but had jobless benefits in 2020. The IRS said taxpayers should not file amended returns just yet.
This story is developing and will be updated.
Contributing: Jessica Menton, USA TODAY; Susan Tompor, Detroit Free Press
Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko