Financial Briefs

Email This Article To A Friend

Tax Filing Season To Begin Two Weeks Earlier This Year

4988 1

Facing the prospect of a difficult tax filing season, the Internal Revenue Service says it will begin processing 2021 income tax returns on January 24 -- 17 days earlier than last year’s filing season began.

Fearing the Omicron variant might sideline employees and cause delays in processing returns, the agency Tuesday said the earlier-than-usual start-date for individual tax return filers “allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly.”

“The pandemic continues to create challenges,” IRS Commissioner Chuck Rettig said in a press release. "In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs.”

4988 3

More than 240.2 million Federal tax returns and supplemental documents were processed in the year ended September 30, 2020, according to the IRS. Almost 122 million refunds were issued, amounting to more than $736.2 billion. Yet the IRS is “in a hole,” according to a story in The Wall Street Journal on Jan 10, which is consistent with a report July 1, 2021 in The New York Times of an IRS backlog in processing 35 million returns.

In addition to beginning the filing season earlier, the April 15 deadline is delayed this year until April 18 for Emancipation Day, commemorating April 16, 1862, when President Abraham Lincoln issued the Emancipation Proclamation freeing slaves. While Emancipation Day is not a federal holiday, it is a holiday in District of Columbia and federal offices are closed. 

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.