Smart Tax Planning

White House weighs pushing tax deadline back to Sept. 15

Key Points
  • To help bolster the economy, the White House is weighing a variety of measures, including the possibility of extending the tax-filing deadline to September or even December, NBC News reports.
  • The Treasury Department already delayed the April 15 deadline, giving Americans until July 15 to file their federal income tax returns and pay amounts owed for 2019, as well as first- and second-quarter estimated taxes for 2020.
  • Pushing back tax deadlines too far could lead to taxpayers shelling out for massive payments in the future, some say.
US President Donald Trump speaks about COVID-19, known as coronavirus, after signing a Proclamation in honor of National Nurses Day in the Oval Office of the White House in Washington, DC, May 6, 2020.
Saul Loeb | AFP | Getty Images

The White House is weighing a second Tax Day delay, according to NBC News.

The Trump Administration is reviewing different proposals to help restart the economy, which continues to suffer from the effects of the coronavirus pandemic.

A further delay of the deadline for filing federal income tax returns and taxes owed is a one measure that's on the table, two people familiar with the discussions told NBC News.

The tax deadline — which the Treasury Department has already pushed back to July 15 — could go as far out as Sept. 15 or even Dec. 15, those people said. However, administration officials told NBC News that no decision has been made.

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"As President Trump has said, we are going to ensure that we take care of all Americans so that we emerge from this challenge stronger and with a growing economy, which is why the White House is focused on pro-growth, middle-class tax and regulatory relief," said Judd Deere, White House deputy press secretary.

"The President's bold policies of low taxes, deregulation, reciprocal trade and energy independence took this economy to record-setting historic highs once, and they will do so again," he said.

Pushing back tax deadlines too far could lead to taxpayers shelling out for massive payments in the future, some say.

States will fall short of revenue projections through fiscal 2021: Expert

"I worry that if we push back too much, we're going to end up sticking people with balloon payments," said Marc Goldwein, senior vice president and senior policy director for the Committee for a Responsible Federal Budget.

For instance, delaying payments far into the year would leave quarterly taxpayers owing for 2019, plus the first three quarters of 2020 and paying Uncle Sam in a massive lump sum.

"In general, they should think about a new tax schedule rather than pushing out the deadline," Goldwein said. "If you keep pushing out, it's too many tax payments."