The IRS has finally caved to Congressional pressure and extended the tax season until May 17. You may never hear me say this again, but it’s not the IRS’s fault! Congress waited until the end of December to pass Stimulus 2 (politics…), and then dumped it on the IRS to implement (delaying the start of this tax season until Feb 15). Then, Congress passed Stimulus 3 (which should have been 2) during the middle of tax season without any regard to how this affects the IRS or states. Bottom line: it’s a mess! I’m frankly surprised the IRS didn’t crash and fail to reboot!
So, here we go again! The Federal Deadline to File & Pay has been automatically Extended from April 15 to May 17. We expect most states to follow suit like they did last year, but pay attention to your local news just in case your state gives Congress the finger on this extension. If you need even more time, you can still file an extension for time to file until Oct 15, but the IRS will start charging interest on any amount due on May 18.
We strongly recommend you FILE your taxes by April 15 if you can so that none of the state confusion affects you. Definitely, FILE NOW if you think you’re getting a refund since delayed filing could mean delayed Stimulus 3. We also expect IRS refunds to take more than the typical 8-14 days while they are distributing Stimulus 3 checks and deposits (and sometimes debit cards).
The Deadline for FEDERAL 1st quarter estimated tax payments has also been extended to May 17.
Now, on to other stuff! If you have already filed your taxes and had Unemployment last year, you may need to amend to claim the exclusion (up to $10,200 allowed) that Congress passed mid-tax-season (I really hate Congress!). The IRS (they really hate Congress too!) is still working on guidance and will let us know. It’s a monster mess for states too! Same goes for anyone who had to repay Premium Tax Credits (this is Obamacare stuff). If you’re one of these people, please stand by; we’ll let you know when we know…
We are likely to keep normal tax season business hours through April 15, then reduce hours through May 17, then go to off-season hours. Appointment options are already limited somewhat due to COVID and will be limited even more after April 15, so please don’t wait until the last minute. Many of our clients are choosing to use our TeleTaxPrep service rather than come into the office. I’m happy to walk you through that process if you want to give it a try. Just call or email me.
TeleTaxPrep: Basically, get your tax documents to us any way you can. Snail mail, UPS, FedEx, fax, email, or the awesome preferred method, SecureFilePro (our Encrypted Portal – like the Dark web, but safer!). We work on them for a few days and then contact you for some Q&A (phone or email). Once everything is finalized, we get some permission signatures (the same forms you’ve always signed) and payment, usually by that awesome SecureFilePro system, and you’re set. No traffic! No germs! Only limited human contact!