History of Tax Day: Still April 15?
Tax Day
HISTORY OF TAX DAY
April 15 is the deadline for filing income taxes in the United States… usually.
But there are extensions, postponements, and natural disasters,
It has been wondered aloud by tax accountants:
“Will taxes will ever be due on April 15 again?”
- The Coronavirus pandemic delayed deadlines to July 15 in 2020 and May 17 in 2021.
- Natural disasters and public emergencies have brought filing extensions to many states.
- Other locations have delayed deadlines based on whether it’s been declared a State Disaster Area, Federal Disaster Area, or both.
Last year, for example, Los Angeles County was declared both a state and a federal disaster area, and both Federal and State tax deadlines had been delayed until October.
Tax Day Filing Extension Gotcha
While taxpayers may cheer the extension of the filing deadline, this had a catastrophic effect on the California budget last year. How did this happen?
During the pandemic, California had record budget surpluses–$98B in 2022. For fiscal year 2023-2024, it had a general fund spending plan of $308B. California experienced numerous natural disasters in 2023, prompting the Internal Revenue Service to extend the tax filing deadline for almost all Californians from April to October… then to November. This was a delay in receiving tax revenue for over half a year. The California State Franchise Tax Board did the same.
When tax revenues were finally counted, they were less than expected. How much less? $68B less. In other words, the state didn’t have all its tax revenue tallied when lawmakers passed the 2023-24 budget in June.
Beware the 15th!
April 15 isn’t the only tax day. It turns out that the 15th of nearly every month is a tax due date – beware the Ides!
- Partnerships are due March 15.
- Certain foreign taxpayers‘ returns are due June 15… with the extension for all of those six months later.
- Corporations and individual taxes are (usually) due April 15.
And:
- Quarterly estimated taxes are due in April, June, September, and December for corporations; April, June, September, and January for individuals; states play by their own rules and have the same due dates at the beginning of a month.
- Trusts and Nonprofits have their own dates.
The Joy of Tax Day
Tax Day is the anniversary of the celebration of the joy we feel when we receive a tax refund—until we realize it was our own money in the first place. The government had been “borrowing” it from us for the better part of a year and paying us no interest for the privilege. The holiday is celebrated by mentioning tax credits, exemptions, deductions, write-offs, and dependents… some of which may be the same.
Ancient Tax Day
Tiberius Tribute Denarius
Back during the time of Jesus, this season was referred to as
“render unto Caesar the things that are Caesar’s.”
…suggesting that the image (eikon) on the face of the coin indicated to whom the tax was due, in contrast to man, who is made in the image of God.
Colonial America Funding before Taxes: Lotteries
During the American Colonial period, lotteries played a significant role in raising funds for a variety of public and private ventures.
Colonies could finance essential services and projects with lotteries:
- In 1621, Jamestown, Virginia, was unsuccessful in obtaining assistance from the Crown but was permitted to hold a lottery in England to raise funds for ships bound for the Jamestown Colony and for the settlers there.
- Massachusetts authorized a lottery in Boston in 1745 to cover military debt, among others. The date says 1744, but back then, Christmas was observed in March.
Massachusetts Lottery ticket
- Founding Fathers such as George Washington, Ben Franklin, and John Hancock sponsored lotteries to fund public buildings, roads, and canals.
- Colleges like Harvard, William & Mary, Yale, and Princeton were initially funded by lotteries.
- In 1776, the First Continental Congress initiated a large lottery to help fund the Revolutionary War.
And as we all know, England’s taxation of the American colonies led to the American Revolution. As James Otis stated the political slogan:
Taxation without representation is tyranny!
Statue of James Otis jr in Barnstable
History of Tax Day
In America, the Federal Income Tax was first instituted under the Revenue Act of 1861 to help fund the Civil War. However, it was later repealed, re-adopted, and ultimately found unconstitutional in 1895 because it violated the rule that direct taxes be apportioned among the states. However, it differed from today’s Income Tax in that, back then, it was based on assessments rather than voluntary tax returns.
In 1913, the 16th Amendment to the U.S. Constitution gave Congress the authority to tax all income without regard to the apportionment requirement, with a filing deadline of March 1. This was changed to March 15 in 1918, and then to April 15 in 1955, unless it falls on a weekend or holiday.
On this Tax Day 2025, the Internal Revenue Service marks a major milestone: the 70th Anniversary of the April 15 federal income tax filing deadline. Since 1955, April 15 has been a consistent annual deadline for millions of Americans to file their federal income tax returns, becoming a fixture in the nation’s financial calendar.
Modern Tax Day
For Tax Accountants, this is called the “busy season,” as they put in nights and weekends to finish tax returns. If they’re corporate tax accountants, they do it again in October.
Tax Day Terminology
Here are some helpful terms as you prepare your tax forms:
- De minimis: a Latin phrase meaning “about minimal things.” In legal and tax contexts, it refers to something so small or insignificant that it is not considered worthy of concern or enforcement… how are your deductions doing?
- Extension: get an out-of-jail-free pass for not filing by the deadline, but only for a limited time
- Coffee: what tax accountants convert into tax returns
- Starbucks: a place you cannot deduct as a workspace
- Dependent: not your dog
- Accrual: the kind of world it is out there
Two things are inevitable: death and taxes. The latter, though, is the gift that keeps on giving… or taking.
Bill Petro, your friendly neighborhood historian
billpetro.com
