Taxable Talk

When Congress wrote the law giving the deadline for taxes, they stated that it would be the 15th day of the fourth month following year-end, unless that day is a holiday in the District of Columbia. Back when that law was written, holidays in the District matched federal holidays. However, that’s no longer the case.

A friend reminded me that District of Columbia Emancipation Day is April 16th, but that’s a Saturday this year. Per DC law, when a holiday falls on a Saturday, it’s celebrated on the previous Friday. Thus, April 15th is a holiday in the District of Columbia. That means taxes will be due on Monday, April 18, 2011 rather than Friday, April 15th.

When this last occurred, every state with an April 15th deadline adjusted their deadline. California tax forms state that they are due on April 18, 2011, so we will have to see if the Franchise Tax Board (and other state and local agencies will adjust their deadlines. They probably will to avoid confusion, but I’ll keep you updated.

[Update: I erred when I originally posted this; California’s income tax deadline is April 18th. See my new post here.]

Personally, I have mixed feelings over the delay. On the positive side, it means that I have three extra days to get through the returns. On the negative side, it means another weekend where I’ll be working every waking hour.

Do you itemize your deductions? Do you take the Tuition and Fees Deduction? If you take those are several other deductions and credits you will not be able to file your tax return until mid to late February.

Why? Because Congress waited until the last minute to decide what to do with the Bush Tax Cuts, and the IRS computers have to be reprogrammed. As this IRS press release states, if you’re one of those impacted–and one-third of all taxpayers will be–you will need to wait to file your return.