Like everything else this past year, the COVID-19 pandemic has affected the tax season, but only slightly.
Recently, the Internal Revenue Service (I.R.S.) announced that tax season will start a little later than usual. This year the I.R.S. will begin accepting and processing 2020 tax returns on Friday, February 12, 2021.
In light of the December 27 tax law changes which brought a second round of Economic Impact Payments and other benefits to many, the I.R.S. will use this additional time to update, program, and test their systems.
However, if you intend to work with a tax professional or use tax software, there’s no need to wait. If you prepare your return now, not only will you have your taxes done and out of the way, but your filings will be transmitted to the I.R.S. starting February 12.
Even with this new date in mind, your deadline to file is still April 15. To request an extension, make sure you do so by April 15. This may grant you until October 15 to file your 2020 tax returns. However, this is an extension for filing only. The I.R.S. still requires one to pay any taxes due by the original filing date of April 15.
Filing one’s tax returns can be a complicated and sometimes daunting process. It’s never a bad idea to speak with a tax professional before filing, or securing their services to file on your behalf.