Tax Season Is Just Ahead, But A Bit Delayed

Relax, early filers!  You might be ready for the IRS, but the IRS is not yet ready for you.

Taxpayers itching to file their 2020 tax returns at the first possible moment will have to wait about two weeks longer than usual this year.

The Internal Revenue Service has set Feb. 12 as the first day of the 2021 tax season. That’s when the agency will start accepting and processing an estimated 150 million federal returns. Last year’s kick-off came on Jan. 27.

Tax returns will be due on April 15, according to an IRS announcement. That is the normal deadline date.

The IRS says that it needs time to program its computers for tax-related changes in the latest law sending stimulus payments and other benefits to Americans. President Trump signed the legislation on Dec. 27, 2020.

We should note that many people using tax preparation software can send returns to those software companies right away. However, the returns actually will not be submitted to the IRS until Feb. 12.

As in the past, the IRS advises electronic filing, and direct deposit of refunds. The average refund from 2019 returns was more than $2,500, according to the agency.  

As tax season opens, be sure about your tax situation. Contact Eric Buechler, owner of EricJohn Ltd., for expert advice and preparation of federal and state returns. Eric is an enrolled agent recognized by the IRS.