The tax filing season is now set to begin on February 12 this year, which is two weeks later than usual, according to information released by the Internal Revenue Service.
What’s the reason for the delay? Well, a lot of it seems to have to do with technical things like systems updates and tests after the late December stimulus law approved a second round of stimulus checks, along with various other tax benefits.
The deadline, however, will still be April 15.
“This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers,” according to the IRS statement. “These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.”
A later start date means some refunds will be delayed, at a time when they’re extremely important to taxpayers, said Mike Dolan, national director of IRS policies and dispute resolution at KPMG LLP and a former deputy commissioner at the agency.
This tax filing season will be particularly consequential because individuals who have yet to receive some or all of their $1,200 stimulus payments from the March 2020 Cares Act or the $600 stimulus payments approved in December will be able to claim that money on their return and receive it in the form of a tax refund. The payments could help bolster household income and savings rates that have fallen recently as previous fiscal assistance faded and the coronavirus pandemic continued to rage.
Are you guys ready for even more good news? It turns out some people might find out they owe more tax money this year than usual. The reason for this? The expanded unemployment benefits that were claimed by millions of out of work Americans are taxable and they don’t withhold income taxes when they give out these payments.
Taxes just plain suck, don’t they?
What this country needs is a flat tax of 10 percent. Or just a sales tax. Heck, it would be great if there were no income tax at all, wouldn’t it?