WASHINGTON – The Internal Revenue Service is delaying the start of tax filing season by a couple of weeks to allow the agency more time to test its systems, according to a news release.
The IRS announced on Friday that tax filing season, which typically begins in late January, will not start until Feb. 12, when the IRS will begin accepting and processing 2020 tax returns.
Officials said the move allows the agency extra time to adapt to the Dec. 27 tax law changes that came as part of the latest COVID-19 relief package, which included economic impact stimulus payments and other benefits.
“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. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return,” the release said.
IRS officials said tax filing season always requires a significant amount of planning and that that’s even more true with the coronavirus pandemic adding extra responsibilities to the agency’s plate this year.
“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time,” said IRS Commissioner Chuck Rettig. “Given the pandemic, this is one of the nation’s most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible.”
Individuals who are already prepared to file their taxes don’t have to wait to get started. In fact, the sooner you file, the better, according to the IRS.
“To help speed refunds during the pandemic, the IRS is urging taxpayers to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners,” the IRS wrote in the release. “These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting Feb. 12.
Here’s what you need to know, according to the IRS, to make filing your taxes easier and speed up the refund process:
Tips for taxpayers to make filing easier
- File electronically and use direct deposit for the quickest refunds.
- Check IRS.gov for the latest tax information, including the latest on Economic Impact Payments. There is no need to call.
- For those who may be eligible for stimulus payments, they should carefully review the guidelines for the Recovery Rebate Credit. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn’t receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return. Tax preparation software, including IRS Free File, will help taxpayers figure the amount.
- Remember, advance stimulus payments received separately are not taxable, and they do not reduce the taxpayer’s refund when they file in 2021.
Key filing season dates
- January 15: IRS Free File opens. Taxpayers can begin filing returns through Free File partners; tax returns will be transmitted to the IRS starting Feb. 12. Tax software companies also are accepting tax filings in advance.
- January 29: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
- February 12: IRS begins 2021 tax season. Individual tax returns begin being accepted and processing begins.
- February 22: Projected date for the IRS.gov Where’s My Refund tool being updated for those claiming EITC and ACTC, also referred to as PATH Act returns.
- First week of March: Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns.
- April 15: Deadline for filing 2020 tax returns.
- October 15: Deadline to file for those requesting an extension on their 2020 tax returns
Filing season opening
The filing season open follows IRS work to update its programming and test its systems to factor in the second economic impact payments and other tax law changes. These changes are complex and take time to help ensure proper processing of tax returns and refunds as well as coordination with tax software industry, resulting in the Feb. 12 start date.
The IRS must ensure systems are prepared to properly process and check tax returns to verify the proper amount of EIP’s are credited on taxpayer accounts – and provide remaining funds to eligible taxpayers.
Although tax seasons frequently begin in late January, there have been five instances since 2007 when filing seasons did not start for some taxpayers until February due to tax law changes made just before the start of tax time.