IRS delays tax deadlines for IRAs, health savings until May

The IRS Announced Monday that there will be several more tax deadlines in the next month – although not the ones some really want to see postponed.

The agency announced that the deadlines for paying 2020 contributions to Individual Retirement Accounts, Health Savings Accounts and Coverdell Education Savings Accounts have been moved to May 17 from April 15.

However, the IRS stressed that it does not delay the deadline for estimated tax payments for non-withholding income, as some have requested.

The plan does not change the April 15, 2021 deadline for estimated tax payments. These payments are due on April 15th, ”the department said.

The announcement comes after the IRS announced earlier this month that it is postponing the traditional April 15 deadline for filing 1,040 tax forms for the second year in a row because of the coronavirus pandemic.

At a congressional hearing earlier this month, IRS Commissioner Charles Rettig dismissed legislative proposals to exceed the estimated tax deadline as well, saying it would primarily benefit the rich.

“There is a large contingent of wealthy people in this country who are failing to make their estimated payments,” Rettig told a subcommittee on monitoring ways and means. “We’re not going to give them a break on interest and penalties.”

Veronica Vera, spokeswoman for the American Institute of CPAs, said, “Estimated quarterly payments are not exclusive to the ‘rich’.”

“The decision to exclude estimated payments in the IRS-given relief ignores the challenges faced by many self-employed people, such as grocery stores” and “small businesses struggling to stay open,” she said.

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