New Bill Changes Estimated Income Tax Payment Deadlines

By Melanie Waddell

News June 26, 2023 at 02:54 PM

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The American Institute of CPAs on Monday applauded legislation, H.R. 3708, the Tax Deadline Simplification Act, which seeks to simplify the quarterly installments for estimated income tax payments by individuals.

"Specifically, we support changing the due dates for the second and third quarter estimated federal income tax payments to have all quarterly payments due 15 days after the end of the quarter," Peter Mills, Senior Manager for Tax Policy & Advocacy with the AICPA, told lawmakers in a letter.

Currently, quarterly estimated tax payments for individuals (including small-business owners) are due April 15, June 15, Sept. 15 and Jan. 15, Mills explained.

"The spacing between these dates does not tie to normal quarters, which can be confusing to self-employed individuals (and others) and even challenging to compute and timely pay," he said.

Changing the June date to July 15 and the September date to Oct. 15 "would consistently schedule the dates to three months apart and tie to the normal quarter date (15 days after the quarter end) making it easier for taxpayers to meet their tax obligations in a timely manner," Mills said.

Mills stated that "this simple adjustment will be a benefit to taxpayers, including those who are relatively new to filing and paying quarterly estimated taxes."

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