Will the new stimulus be reconciled on 2020 returns or 2021 returns. Will a portion of unemployment benefits for 2020 be made not taxable. How will it work if they are? Will the IRS want to deal with millions of amendments, will they automatically fix returns or will it just be done as a credit on 2021 returns. Will the amendments be able to be e-filed or will they all be paper? Lots of questions but not a lot of answers.
The answers to the questions will certainly come but its doubtful that this will happen before the 2020 dead line. The IRS has all it can deal with during the filing season so in my opinion many of these answers wont come till after April 15th. The IRS is still trying to get caught up on 2019 paper filings so don’t hold your breath. With administrating the Stimulus and dealing with Covid the IRS has had their hands full and Congress is ready to dump more on them.
At this time there is no plans to extend the tax season so April 15th is still the day unless you are filing an extension. We can only deal with what we have to work with now so waiting on Congress, the IRS and then ultimately the software companies to get updated probably isn’t a good idea. We have about a month and a week left so time to get your stuff together and get your taxes done. We will deal with changes and updates as they become fact. I will certainly keep my clients who are effected by any changes updated. April 1st is still my cut off. Anything after that may be in line for an extension. If things go as planned Ill have everything done by the 15th but at this point its wait and see. So if you haven’t filed yet its time.
I hope everyone is well and as always this Tax Season will come and go just like they always have. God Bless!
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