This year will be the third time that taxpayers are filing their taxes during the pandemic. In the past, we’ve seen the Treasury Department and the IRS push back the traditional tax deadlines to July 15 in 2020 and to May 17, 2021.
In a recent article by MarketWatch, IRS Commissioner Charles Rettig states that there is no intent to push back the deadline this year. Although this year is expected to be a potentially bumpy tax season, it appears that there will be no extra time for tax preparers and taxpayers to pay their 2021 tax bills and file returns. Rettig says the IRS will assess how the tax season progresses to decide whether to extend the deadline. “We don’t make that decision lightly either to extend it or not extend it. We share the same concerns everybody else has. We listen to a lot of people and we make a decision that we believe is best for the country,” said Rettig.
Taxpayers can still file an extension, which would allow them to have an October 15 deadline to file their 2021 return. To avoid delays, the IRS emphasizes the importance of filing taxes electronically and opting for a direct deposit rather than a check. More than 169 million returns were filed last year, so this year the IRS expects over 160 million individual tax returns. Therefore, it is essential to file accurate returns, as errors can cause delays in refunding bank accounts.
With the IRS staff declining over the past couple of years, the IRS had to temporarily shut down its operations at the beginning of the pandemic. Then, the IRS had to push out three rounds of stimulus checks, deal with millions of phone calls and tax law changes, and ultimately accumulate a backlog of returns.
“If you think you are not going to be able to submit your tax information in time to your CPA, let them know in advance so they can plan on filing your extension. If you’re a business owner, ask us about the R&D tax credit and cost segregation studies, as you may be eligible for these tax savings opportunities,” states Lori Lato, Tax Partner in Charge.
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