The Internal Revenue Service (IRS)
has delayed
the start of the 2020 tax filing season
until February 12
.
The IRS normally begins accepting and processing returns in late January, but it will be delayed for a few days
due to the coronavirus pandemic
, payment of $ 600 aid checks and changes in tax laws.
"If the tax filing season opens without the correct scheduling, then there
could be a delay in issuing refunds to taxpayers
," the IRS said, adding that this change ensures that eligible individuals can receive payments for the
tax
package. encouragement as a refund when they file their return.
"While I am disappointed that this year's filing season starts later than usual, I
acknowledge that the IRS has faced
extraordinary
challenges
during the COVID-19 crisis," said the Chairman of the House Ways and Means Commission. Representatives, Richard Neal.
[Still not getting your $ 600 check? This IRS tool helps you know the status of your payment]
"It is a relief to know that despite struggling with the distribution of two rounds of economic impact payments, facility closures and other disruptions, the agency will be able to begin accepting returns within the next month," Neal added.
The Internal Revenue Service encourages taxpayers to
file their returns electronically
so they can receive their money back through direct deposit.
Free File Alliance, an IRS program that partners with private companies
to provide free tax preparation, it is available to those whose gross income was less than $ 72,000 in 2020.
Taxpayers who file their returns on paper risk delays
.
The IRS accumulated a large amount of back mail last year amid the pandemic, and returns have taken longer to process.
Biden promises $ 1,400 round of checks for pandemic
Jan. 15, 202102: 08
There were still
7.1 million unprocessed individual returns
and 2.3 million business returns processed as of Nov. 24, according to the Taxpayer Defense Service.
"If for some reason you think a statement on paper makes sense to you, reconsider," Zollars said.
Some will receive returns in March
The IRS said that normally the payment of refunds is paid to taxpayers during the first week of March, but that is in case the tax filing start season opens in late January.
Low-income taxpayers who receive the Earned Income Tax Credit or the Additional Child Tax Credit generally
cannot receive a refund before mid-February
.
[IRS alerts of new scam linked to $ 1,200 economic stimulus check]
This is because of an anti-fraud law that requires the IRS to use the extra time to review those returns to prevent refunds from being issued to scammers.
The IRS expects taxpayers claiming earned income and additional child tax credits to
collect their refunds the first week of March
, assuming they file electronically and there are no problems with their returns.
Last year, IRS fraud filters diverted 5.2 million returns claiming refunds, according to a recent report from the Taxpayer Defense Service, an IRS watchdog.
For a quarter of those statements marked for income verification, refunds took more than 56 days.
About two in 10 of the returns flagged for identity verification had delays of more than 120 days.
Normally,
the turnaround time for a refund is around 21 days
if the tax return has no problems.
[Didn't get the $ 600 aid check? This may be the reason and this is how you can solve it]
This year's changes
The IRS noted earlier this week that all tax return forms and instructions are available.
This year last minute changes were included.
Individual taxpayers will be able to file Form 1040 or the new Form 1040-SR upon receipt of Form W-2 and
instructions are available on
the agency's
website
.
The stimulus package payments are an advance payment of the recovery refund credit found on page 59 of the instructions for forms 1040/1040-SR, Accouting Today reported.
[How to track your pandemic aid check. The IRS enabled a tool]
Anyone who has not received the full amount of both grants should include the amount they received, prior to the offsets, when applying.
In the event that you have received the full amount of both grants, you should not include any information about the advance payments when you file the tax return.
With information from CNBC, USA Today.