The IRS will not accept or process tax returns prior to February 12.
The nation’s tax filing season is slated to begin on February 12 this year, about two weeks later than normal, the Internal Revenue Service (IRS) announced recently.
Why a Later Start?
According to the IRS, delaying the start of tax return acceptance by IRS is necessary to allow time to reprogram, update and test all systems, in large part due to the new Consolidated Appropriations Act that passed in late December, which we wrote about in this Alert, and which complicates tax compliance in a variety of areas for the IRS, businesses and individuals.
Why Is This Important?
The IRS will not accept or process tax returns prior to this date. As a result, the delay in opening tax filing season will likely mean a delay in receiving refunds for those eligible and at a time when many taxpayers are counting on them.
Some taxpayers may use this delay as a reason to delay the preparation of income tax returns, only to later find out that they owe more taxes than usual and then have less time to plan for payment.
So far, the March 15, 2021, tax filing due date for partnerships and S corporations and the April 15, 2021, tax filing deadline for individuals and C corporations have not changed, thereby further compressing the tax season.
Don’t delay. Take advantage of the delayed start of tax filing season to collect, organize and submit your tax material to your tax service provider to get an idea of your 2020 tax results sooner rather than later; to get a jump start on 2021 tax planning, especially in light of new tax legislation; and to reduce your exposure to tax-related identity theft and refund fraud, which both continue to rise.
For More Information
If you would like more information about this topic or your own unique situation, please contact Michael A. Gillen, Steven M. Packer, any of the practitioners in the Tax Accounting Group or the practitioner with whom you are regularly in contact. For information about other pertinent tax topics, please visit our publications page.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.