The IRS won’t process any Federal tax filings until February 12th, saying it has been bogged down processing and submitting stimulus checks to Americans.
A.C. Stickel, President of the Tax Shelter in Altoona says IRS employees have been forced to work from home due to the pandemic and that’s creating difficulties as well.
The delay in processing means you if you get direct deposit. You shouldn’t expect a refund until at least February 19th. If you normally receive a check, don’t expect it until at least a week after that.
Stickel reminds anyone who may have received unemployment compensation in 2020 that those benefits are taxable by the IRS. If you elected not to withhold Federal taxes on those unemployment checks, Stickel says you can expect a smaller refund and you might even owe the IRS. Stickel says don’t wait to file.
“I’ve had clients over the years that come in on April 14th and they owe two or three thousand dollars and they just don’t have it. What am I going to do? I didn’t want to come in. I’ve always gotten a refund. Well you did something or your employment change or withholding changed or whatever. This year we strongly urge people to be prepared for that.”
April 15th is still the tax deadline according to the IRS. Stickel says stimulus checks are not taxable but if you did not receive a stimulus check you can apply for one on your 2020 return.