TRENTON – Acting in preparation of the potential extension of the federal tax deadline, Senator Paul Sarlo, the chairman of the Senate Budget and Appropriations Committee, introduced legislation that would extend the filing and payment deadline for state taxes as well.
Now that the American Rescue Plan was signed by President Biden, the IRS could be acting to extend the April 15 deadline to May 15, 2021 and New Jersey should be prepared to align the schedules, Senator Sarlo said.
“It’s important to individuals and businesses that New Jersey conforms to any change in the IRS deadline so that affected taxpayers have sufficient time to meet their tax obligations,” said Senator Sarlo (D-Bergen). “The state and federal deadlines need to be aligned so that the benefits of the IRS extension are not lost. The Rescue Plan will deliver much needed support but it will also impact the finances of nearly everyone in ways that will likely require changes to filings and payments.”
This bill would provide a one-month extension for taxpayers who are required to file a return or report, or make a payment for the gross income tax or the corporation business tax by April 15, 2021. They would not be subject to any extra fees, penalties or interest payments for the extension period.
According to news reports, the IRS is behind in processing nearly seven million tax returns as it struggles to keep up with the demands of issuing stimulus checks and implementing tax code changes from the coronavirus relief packages.
Senator Sarlo also expressed concern about senior citizens who are most at risk from COVID-19, and often require assistance in preparing their returns and may not have access to or familiarity with Internet services.