The Internal Revenue Service (IRS) recently announced the delay of the start of tax season to February 12, meaning the IRS will not start accepting or processing any 2020 tax returns until that date. Compared with last year’s start of January 27, this change could significantly delay refunds for many taxpayers.
The change was designed to allow for programming and testing of new IRS systems needed for updated tax laws after the latest legislation and second round of stimulus checks. The IRS was already experiencing a backlog and the economic impact payments or stimulus payments, which were distributed in March and December, slowed down the tax return processing significantly.
Many states have not yet passed conformity legislation, so it may be necessary to extend or amend.
Even with the delayed start, taxpayers can still file electronically with direct deposit. Electronic filing is highly recommended to cut down on processing time and avoid even more delays. As soon as you have the required documents, please reach out to your tax professional to begin your tax return.
At this time, the tax deadline is still April 15.
With the constantly changing tax guidelines, it’s important to work with a professional who can help plan and maximize your tax situation while remaining compliant with tax law. The tax professionals at BSB are here to help. Contact us today.