IRS Tax Season Officially Begins February 12, 2021

The IRS announced last week that it will begin accepting and processing 2020 tax returns on February 12, 2021, two to three weeks later than in previous years. Taxpayers may begin the process of preparing their tax returns now, although the IRS will not start accepting returns until February 12.

The later start is due to the passage of the Consolidated Appropriations Act (“the Act”) in the waning days of 2020, on December 27, which potentially changed the tax landscape for both businesses and individuals. The Act included an expansion of the Paycheck Protection Program (“PPP2”), provided new stimulus funding, and introduced other benefits such as Economic Impact Payments. The delay will allow the IRS systems to be programmed for any changes that may affect processing. Unfortunately, the delay in opening filing season will likely mean a delay in receiving refunds for those eligible.

In order to avoid further delays, the IRS encourages taxpayers to file electronically with direct deposit information. As of now, the filing due dates have not changed and are as follows:

Pass-through entities

Individuals

Corporations

Other entities

Please consult your Marcum tax professional with any questions. If you are not a Marcum client, we encourage you to reach out to us. Our goal is to provide information to help businesses succeed through this pandemic.