The tax filing period normally begins in late January, but has been delayed this year to February 12, 2021. The IRS has stated that they will need more time to prepare due to the impact of the COVID relief act. And yes, the tax filing deadline is still April 15 for individual returns and March 15 for Partnership and S Corporation returns.
The IRS wants to ensure they have the correct systems in place to avoid further delays in issuing refunds to taxpayers and to ensure that eligible people will receive any remaining stimulus money as a recovery rebate when they file their returns.
The recovery rebate credit is a new addition to the federal income tax return, and it’s available to filers who didn't receive the full amount of stimulus they’re entitled to.
The IRS is recommending that taxpayers submit their returns electronically and use direct deposit as soon as they’re ready.
Low-income taxpayers who receive the earned income tax credit or the additional child tax credit generally can’t receive a refund before mid-February. That’s because an anti-fraud law requires the IRS to use the additional time to review those returns to prevent refunds from being issued to scammers.
The agency expects filers who claim the earned income and additional child tax credits will collect their refunds the first week of March – assuming they file electronically and there are no issues with their returns.
Having your return flagged by the IRS can result in significant delays.
Normally, the turnaround time for a refund is about 21 days if a tax return has no problems.
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Jessica Franz, CPA, EA