Nationwide Tax Day (April 15) has not been modified since 1955.

In 1955, the Tax Code was 929 pages. Right now, it’s greater than 6,600 pages. Why haven’t we up to date our submitting deadline?

Accuracy issues. The correct calculation of tax liabilities is vital for each the Treasury and taxpayers. Serving an vital position in between are skilled tax preparers, CPAs and Enrolled Brokers.

With every passing yr, tax complexities improve and taxpayers obtain their tax paperwork later within the submitting season. Tax professionals battle with a really compressed submitting season to satisfy an outdated deadline. We reside and breathe numbers. We hardly sleep. We hardly spend time with household. We skip meals, eat too many snacks and drink a ton of espresso. Simply me?

Certain, we may stop the business, however right here’s the factor: Most of us just like the work. It’s a bit like cake. Consuming a slice of cake is sweet. Consuming your entire cake in a single sitting is dangerous. We like serving to taxpayers adjust to the Tax Code. We would like our work to be correct. How can we do our greatest work after we are compelled to eat a complete cake in a single sitting? The accounting business is struggling and one thing wants to alter. Older accountants are retiring. Youthful accountants don’t need to eat this a lot cake, so that they rapidly depart. The sandwich technology of accountants is burned out. That was a number of meals references for one paragraph.

So why not file extra extensions and have some work-life steadiness?

When a person taxpayer information an extension request with the IRS, it solely grants further time to file the tax return. It doesn’t lengthen the time to pay. Subsequently, taxpayers should pay their tax legal responsibility by April 15 or face curiosity and penalties on any unpaid legal responsibility. Taxpayers might or might not have all of their data accessible to correctly calculate their tax by the April 15 date. Taxpayers and tax professionals looking for help from the IRS might not have their calls answered. With out virtually absolutely getting ready a tax return, it’s troublesome to correctly calculate somebody’s tax legal responsibility. Get it flawed and the taxpayer faces penalties and curiosity. The extension course of for particular person taxpayers is burdensome. It could possibly be simplified.

The IRS is struggling to serve the taxpayers of this nation. Current testimony by the Authorities Accountability Workplace and the Nationwide Taxpayer Advocate earlier than the Senate Finance Committee said the IRS disconnected 53% of their cellphone calls whereas experiencing virtually 4 instances the pre-pandemic name quantity. The IRS answered a mere 11% of their calls. Contemplating the challenges of outdated pc techniques, staffing shortages and a mounting backlog, it’s nothing wanting exceptional that they had been in a position to rapidly roll out a number of rounds of financial stimulus funds, amongst different pandemic reduction measures. Nevertheless, the issue stays that many taxpayers have questions, considerations, unprocessed tax returns, penalty notices and an IRS that’s largely unavailable.

What are doable options? Simplify the extension course of. A straightforward answer is to permit extensions to not solely lengthen the time to file but in addition the time to pay. Begin the penalty evaluation after the prolonged deadline somewhat than the unique deadline. Make the penalty price zero till the prolonged due date, and twice the present price after the prolonged deadline. If that’s not possible, completely transfer Tax Day to a later date, like Could 15, June 15 or July 15. We’re lengthy overdue for an replace to Nationwide Tax Day. I’ve posted a petition to try this on

Taxpayers deserve a purposeful and modernized IRS. Tax professionals need to have a life past consuming cake beneath duress. April 15 is not sensible. We solely pressure the accounting occupation, the taxpayers and an already overburdened IRS by retaining this deadline.

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