House Votes For E-Filing Deadline Extension

by Mike Godfrey, Tax-News.com, Washington

23 June 2003

The House of Representatives voted last week to extend the deadline for electronically filed tax returns by 15 days from next year, in a bid to encourage a greater take up of e-filing facilities by taxpayers. However, some say the new date will create more problems than it will solve.

The bill was approved by a 252-170 vote in the House, although many legislators have criticised the move, arguing that it is likely to create more confusion and encourage more people to delay filing their tax returns until the last minute. "It certainly gives the procrastinator one more procrastination," William Stromsem, director of taxes at the American Institute of Public Certified Accountants, observed.

Whilst tax professionals seem to support the idea, many think that the IRS will be required to undertake an extensive public education campaign in order to avoid any confusion that two filing dates are likely to create.

Meanwhile, one supporter of the bill in the House, Rep. Rob Portman (R-Ohio) explained that lawmakers were willing to "risk a little confusion" in order to boost the number of people filing electronically, which is generally a more efficient and less error prone method of filing one's taxes.

The bill also includes provisions to waive fees and penalties for minor first-time errors on tax returns in a bid to curtail unreasonable charges for often honest mistakes, and will also allow for tax bills to be paid in instalments as opposed to one lump sum.

The bill must now gain approval in the Senate before it can become law.

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