IRS PLANNING TO DELAY TAX SEASON

The IRS may have decided to heed the pleas of lawmakers, the AICPA and CPAs who have

been urging the tax agency to postpone this year’s April 15 filing deadline. The IRS is planning

to delay the deadline by at least one month, the exact date is yet to be determined. There are a

number of ongoing factors that are posing a challenge for the IRS, CPAs, tax professionals and

taxpayers including:

● Changing tax law in the midst of tax season. The IRS Commissioner cannot remember the last time this was done.

● IIRS software, professional tax software and even over the counter tax software are not up to date with these tax law changes just passed on 3/11/21.

● Because taxpayers were urged to file quickly to receive stimulus payments, millions of taxpayers

that received unemployment and have filed on or before 3/11/21 will need to amend their tax

returns and wait a minimum if 20-24 weeks to receive their refunds. This will put millions of

more returns on top of an already overly capacitated system.

● New forms and reconciliations required this year.

● Other complications due to remote work situations, filing multiple state returns and possible double taxation.

● The IRS is putting priority on third round of stimulus payments.

● No 2020 tax refunds received to date.

● A backlog of 7 millions of individual and business returns that it had not yet processed from 2019.

● IRS call centers not being properly staffed and less than 28% of inbound calls being answered.

● And of course, staffing issues due to Covid 19.

Let the fun continue. We are up to speed on the latest and greatest tax law and filing season

changes. We are here to process returns as normal.

If you have any questions, comments or concerns we are here to answer them for you.