Update on IRS Backlog and Start of New Tax Season
Good news for taxpayers. Last week, IRS Commissioner Charles Rettig stated that the IRS has cleared its backlog of unopened paper mail. Keep in mind that at the end of December, the IRS was still processing over 6.9 million tax returns from 2020. If you submitted a paper return in 2020, it may be a while before you receive a response.
2021 Tax Season
The IRS announced that Friday, February 12, 2021, is when the agency will accept and begin processing 2020 tax year returns for individuals. The later start date provides the IRS with extra time to test and program their systems after the December 27, 2020, tax law changes provided a second round of Economic Impact Payments and other benefits.
For those of you keeping count, this is the fifth time, since 2007, that the start date has been delayed until February.
File Electronically, When Possible
An estimated 21-day turnaround time has been given by the IRS for taxpayers to receive refunds. This turnaround time is only possible if a taxpayer files electronically, uses direct deposit and there are no issues with the tax return.
Once your return is submitted, you may check the status of your refund by visiting the IRS website and use the Check My Refund Status tool.
IRS Dates to Remember:
- February 12. IRS begins 2021 tax season. Individual tax returns begin being accepted and processing begins.
- February 22. Projected date for the IRS.gov Where’s My Refund tool being updated for those claiming EITC and ACTC, also referred to as PATH Act returns.
- First week of March. Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns.
- April 15. Deadline for filing individual 2020 tax returns.
- October 15. Deadline to file for those requesting an extension on their 2020 tax returns
For a list of due dates for income tax returns for individuals, C Corp, S Corp or Partnership, please visit the Wouch Maloney Resource page or click here.
Questions?
Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.
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