Article Source: State House News Service
Author: Colin A. Young
[Coverage Developing] With the Internal Revenue Service moving the federal tax filing deadline back about a month, the Legislature plans to fold a matching extension for the state tax deadline into the unemployment insurance, paid leave and tax relief bill that’s expected to pass the Senate on Thursday. The U.S. Treasury and IRS announced Wednesday that the federal income tax filing due date for individuals for the 2020 tax year would be automatically extended from April 15 to May 17. Senate President Karen Spilka and House Speaker Ronald Mariano announced Thursday morning that “the Senate and House will act immediately to align our state deadlines accordingly.” “The Senate and the House expect to include this in already moving legislation that addresses emergency paid leave, unemployment insurance, and tax relief on forgiven PPP loans,” the legislative leaders said in a joint statement. “This tax flexibility, which was also authorized last year by the Legislature, will provide stability and ensure residents have time to prepare and file as we continue to weather the impacts of the pandemic.” Last year, the state tax filing deadline was moved from April to July, meaning that some fiscal year 2020 revenue was not collected until the early months of fiscal year 2021, a shift that required legislation to authorize bridge borrowing. It is unclear whether the same will be true this year given that the deadline would not be pushed into next fiscal year.