Income Taxes Due July 15 Following Pandemic Postponement
Wednesday is the income tax filing deadline, after the IRS postponed the date by three months due to the coronavirus pandemic. Capitol Correspondent Karen DeWitt spoke to New York State Tax Commissioner Michael Schmidt, about how the delay has affected taxpayers and the state’s finances.
Schmidt: Thus far we have gotten over 9 million returns. We anticipate another 1.3 million or so returns still to come in. So most New Yorkers have come in and gotten their taxes. Some came in, in advance of that April 15 deadline. But then of course, because of the pandemic, the deadline was extended to July 15. So we have another couple days left in and in those days, we expect around 1.3 million to come in.
DeWitt: Do the same rules apply, can you still file for an extension? Like you can usually in April and if you're late, are you going to face the same penalties?
Schmidt: Yep, that's exactly right. So basically, imagine the April 15 deadline and all the rules that apply at April 15. And then just replace the word April with the word July so if you can come in and get your return done that is very advisable. We are issued refunds, we've issued about $6 billion worth of refunds thus far to around 6 million taxpayers and we expect more to go out the door. The three month extension for filing the income taxes has really affected the state's already strained finances right? Because the expected money for payments didn't come in in April. What has been the effects? Well, that's exactly right. Because of the April 15, income VAT tax filing deadline, the state does receive billions of dollars in April and that revenue was deferred out until July so just all the more reason you know, never perhaps has it been more important to meet your civic obligation and now and come in and get your taxes done. Because the state really is relying on the revenue from its personal income tax filers.
DeWitt: And we also know tax collections have been down because of the COVID related economic shut down. Do you have any numbers on how far down the revenue collections are and which industries have been most impacted?
Schmidt: Well, you know, the state comptroller puts out monthly revenue reports. And so his update will come in the middle of July. So I'll defer to the comptroller on the official numbers. But certainly we have seen an impact economically on revenue collections statewide. I think some of the industries you might expect in the context of this global pandemic have been particularly hard hit hotels, bars and restaurants, retail, and then of course, you've had offsetting impacts, like an increase in e commerce with a lot of the state's residents buying their goods and services online. So it is, it has been quite a dramatic impact. And it highlights I think the importance as the governor is continually emphasized of the federal government coming in and stepping up and meeting its obligations. To support the states and critical state services during this time.