Because of the global pandemic, the IRS extended the filing deadline for taxpayers’ 2019 Income Tax Returns. This left many wondering whether the IRS would extend the filing deadlines for 2020 tax returns—generally March 15, 2021 for entity returns, and April 15, 2021 for individual returns. The IRS recently announced the filing deadlines for the 2021 filing season will not be automatically extended, like they were last year.
The IRS announced last week that the upcoming 2021 filing deadlines (for the 2020 tax returns) will remain the same as normally scheduled. But, instead of the IRS accepting returns beginning in January, it will not begin accepting returns until February 12, 2021. That is because it is updating its system and needs additional time to complete that process, so taxpayers’ refunds are not delayed once returns are filed.
On January 15, 2021, the IRS’s free file system became available. Taxpayers that use free electronic filing software to prepare their returns will be able to file the returns through the software before February 12, 2012. However, the return will not be transmitted to the IRS until February 12, 2021. Essentially, a taxpayer can prepare and file the return through the free file systems now, but the IRS will not get it until February 12, at the earliest.
The IRS is encouraging taxpayers to submit their 2020 Income Tax Returns electronically, and provide direct debit information for refunds. Otherwise, income tax refunds may be delayed. For taxpayers eligible to receive economic stimulus payments, please refer to the IRS’s website on how to claim the Recovery Rebate Credit, which may either increase your refund, or reduce your tax due if you did not already receive the full payments you were eligible for.
If you have questions, contact Anderson & Jahde for help.