Massachusetts Group Analyzes Fiscal Effects of Changing Tax Filing Deadline
SUMMARY BY TAX ANALYSTS
The Massachusetts Taxpayers Foundation issued a brief analyzing the state fiscal effects of moving the income tax filing deadline to July 15, 2020, in response to COVID-19, arguing that the shift will move a high amount of tax revenue from fiscal 2020 to fiscal 2021, leaving fiscal 2020 without the necessary revenue for supporting the enacted spending appropriations, and will also significantly modify the state's cash flow, leading to a depleted general cash pool by the beginning of May.
The group suggested some possible solutions, including having the state "book back" a percentage of July 2020 tax revenue from fiscal 2021 to fiscal 2020.