IRS Issues Tips for a Smooth Filing Season
The IRS released several tips aimed at ensuring taxpayers experience a smooth filing season. With the IRS dealing with unprecedented processing delays brought on by the pandemic, it’s more important than ever to do what you can to file a timely and accurate return.
Here are a few of the highlights from the IRS’s news release:
April 18 is the deadline for most individuals to file their 2021 income tax returns. You may file an extension request instead if you wish. Taxpayers requesting an extension will have until October 17 to file, but must estimate and pay any tax due by April 18 to avoid a late payment penalty.
Filing electronically with direct deposit is the fastest way to your refund.
Just as important, filing an accurate return is critical to avoid processing delays and later IRS notices.
Take special care when it comes to any Economic Impact Payments (EIP), or advance Child Tax Credit (CTC) payments received in 2021. Both items will need to be reconciled on your 2021 income tax return and errors could cause extensive delays in processing your return.
Even if you don’t normally file an income tax return, you may want to consider filing one if you qualify for the Recovery Rebate Credit (because you didn’t receive a stimulus payment you were entitled to); to claim the CTC, or Earned Income Tax Credit. All of these items are at least partially refundable, meaning you don’t need to owe income tax in order to receive a tax refund for these credits.
You can check out the rest of the IRS’s tips here.
Many taxpayers owed refunds related to their 2020 income tax returns are still waiting for them. The best thing taxpayers can do to minimize any delays this year is to file their returns as soon as they are ready to have a complete and accurate return prepared. Schreiber Accounting and Advisory can help with tax preparation and planning services. Contact the firm for more information.
Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.