The IRS has extended the 2020 tax filing deadline to May 17th, 2021. What this means for you:
- Federal deadline will move from April 15th to May 17th. States will soon follow.
- If you owe on 2020 taxes, payments will now be due May 17th
- If you owe quarterly estimates for Q1 2021, these will still be due April 15th
This has certainly been a different start to the new year—and, as you can imagine, it is making this tax season like no other. Because of this, we want to give you an update on some of the challenges we are facing in order to complete a simple tax return. Unfortunately, these challenges are new to us and are causing some of you to experience longer turnaround times for the completion of the tax returns. There has been a flurry of legislative activity enacted by Congress which has hindered the IRS and is therefore affecting our timing in servicing our tax clients:
- The official start of tax season being February 12th – 4 weeks later than usual start date, due to new tax laws released in a December 27th bill from Congress
- Reduced staff, remote staffing and increased spacing to ensure the health and safety of our staff and clients, due to Covid 19
- Amending tax returns that we have already filed due to the 2020 tax law changes enacted in March
- New stimulus checks being released during tax season has created a flood of questions from our clients
- New law changes to the PPP program in March, which is raising many questions from our Schedule C filers
- 2020 Tax law changes hidden in the March 2021 Relief Bill, causing delays as we wait for software updates by the IRS and our software vendor
We are making no excuses for a slower turnaround on your tax returns, but we want to be sure you know we are working as diligently as ever to serve you. It is a vastly different year, and we want to do our best to make sure your tax return is 100% accurate.
We will be working continually through April and into May and June with full tax season staffing to service you!
As always, we value your business and appreciate the confidence you place in us for your financial services. Thank you for your patience, understanding and for the opportunity to serve you!
If you have any questions, please contact us.
Blog by Kim Storen, EA – Tax Team Lead, Senior Tax Professional
Learn more about Kim and the rest of the Storen Financial team here.