The US tax filing season will begin on January 24th, and multiple issues will likely complicate and slow down tax-return preparation. The AICPA has been calling upon the Internal Revenue Service (IRS) to implement measures to alleviate expected challenges. In order to help mitigate these delays and complications, it is recommended that taxpayers get their information in as early as possible.
Some of the main issues that will complicate this tax season include:
- IRS still working on 2020 returns
- Pandemic continuing to cause delays
- Child Tax Credit
- Economic Impact Payments
- Paycheck Protection Program loans
However, the good news for the upcoming tax season includes an extended deadline from April 15th to April 18th for most states, and taxpayers who request an extension will have until October 17th to file. The IRS also expects that most taxpayers will receive their refunds as normal, and taxpayers don’t need to have received their 2020 refund before filing their 2021 return.
There are a few things taxpayers can do in order to help avoid delays on their refunds.
- Gather and organize tax records before submitting
- Getting information in as early as possible
- Sign up for direct deposit
- File taxes electronically
If you have questions or need assistance, please contact us or your HW&Co. advisor.