Legislation proposing uniform quarterly estimated tax due dates has resurfaced in the House and has garnered support from professional tax and accounting organizations.
In the tax world, quarterly sometimes does not necessarily mean quarterly. Introduced on May 25 in the House by Representatives Debbie Lesko (Republican of Arizona) and Brad Schneider (Democrat of Illinois), the Tax Deadline Simplification Act aims to establish even due dates for estimated tax installments for individuals, businesses, estates, and trusts. Under this proposed act, payments would be due 15 days after the end of each quarter, aligning the deadlines with the 15th day of January, April, July, and October.
Currently, the estimated tax deadlines, fall in June and September, leading to uneven intervals that are not synchronized with calendar-year quarters. This misalignment can cause confusion amongst current taxpayers. Lesko further expressed her satisfaction in introducing this sensible legislation, which would establish a uniform schedule, simplify tax planning, and assist taxpayers in saving appropriately and meeting their obligations.
There is growing support for the bill from Jan Lewis, Chair of the AICPA Tax Executive Committee, as well as the National Association of Tax Professionals (NATP). The proposed legislation, which would bring the due dates in line with other tax collection systems such as payroll, would improve tax planning, enhance taxpayer compliance, and reduce the burden on taxpayers.