Tax Filing season opening
The 2021 tax season is officially delayed and returns cannot be electronically filed, and they do not recommend paper filing returns, until February 12, 2021. Although tax seasons frequently begin in mid-late January, there have been five instances since 2007 when filing seasons did not start for some taxpayers until February due to tax law changes made just before the start of tax time.
Currently, the IRS is working to update its programming and test its systems to factor in the second Economic Impact Payments and other tax law changes. These changes are complex and take time to help ensure proper processing of tax returns and refunds as well as coordination with tax software industry, resulting in the February 12 start date. The IRS must ensure systems are prepared to properly process and check tax returns to verify the proper amount of EIP's are credited on taxpayer accounts – and provide remaining funds to eligible taxpayers. Also, tax refunds will be received later this year. Tax refunds will also be delayed until March 2021. They should begin reaching those claiming EITC, ACTC (PATH Act returns) and for those who file electronically with direct deposit, providing there are no issues with their returns beginning the first week in March.