- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Since there are more daily cases of Coronavirus compared to the same time last year I wonder what the probability of an extended tax season is? Also there is supposed to be a surge of Coronavirus in March due to the mutations. I would not mind another extension of tax season like last year.
Solved! Go to Solution.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Highly doubt it. The few times IRS officials have been asked, they have said no plans to do so. And there does not seem to be any groundswell of agitation from taxpayers pushing for this.
As a society, we more or less have adapted to the pandemic at this point, which is a very different situation from last year, when it really came into view into mid-March and offices and schools suddenly shut down, giving urgency to postponing the deadline only a month away.
That said, I agree with you the tax season extension last year was a blessing in disguise for preparers and I would be happy if it became permanent. Was able to take on more clients while spreading out my hours over an extended busy season. Didn't really understand all the carping from other accountants.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you for the reply. I would imagine that some tax accountants may have been complaining last year because they were used to working only to April 15th and then taking it easy for the rest of the year
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Look at all of the complaining here about forms not being ready yet and it is the middle of February. And what if the next stimulus bill contained a provision to make some of those unemployment benefits not taxable? It ain't over til it's over and it ain't over yet so don't bet the ranch on shutting the lights off on April 15th.
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Does anyone know the current status of unemployment benefits, first $10,000 not subject to Federal tax? I am starring at my pile of "on hold returns" and getting nervous.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
It looks like the bill just got passed by the House of Representatives .. It looks like the first $10,200 of unemployment compensation received in 2020 will be non-taxable , but you should check this for yourself to verify... it may take a little while for the IRS and ProSeries to coordinate and change necessary forms... I think it is a good idea to just be a little patient , but that is just my opinion..
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I just ran an update 5 minutes after the House passed the bill. The software seems to be excluding the income now. Isn't it working for anybody else? 😬
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you folks
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Is it going to automatically amend all of the returns with unemployment too? 😉
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
That's a good one. 🤣
Ex-AllStar
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yeah, we wish, right! I have many already filed and many sitting here staring at me with unemployment....WTF is Congress thinking making my life even crazier than normal during a very short tax season...arghhhhh! 😉
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I feel exactly the same.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
So now that it is official RE: ARP Act 3.11.21 what is the outcome for us preparers?
1. 1st 10,200 UI of 2020 not taxable, if filled - File 1040-X. - I'm charging $150.
a. If not, assume Tax Software will be revised to accommodate this change.
2. 3rd Stimulus payments - reporting on 2021 I assume.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
WOW! $150
You must have a very high earning clientele base who are eligible to collect unemployment benefits!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
How is what a client earn relate to what time I take to file a 1040-X?
And how can they be high earing clients when they are collecting unemployment?
What do you charge for filing these?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
@Camp1040 wrote:
WOW! $150
You must have a very high earning clientele base who are eligible to collect unemployment benefits!
OUCH!
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Not $150 for an one issue correction, I realize other forms will be impacted and recalculated but your not using a pencil and carbon paper.
Maybe your clients are not long time repeat customers.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I am going to be like a personal injury attorney - I'm going to bill for 1/3 of the refund. 💲
Or maybe not. Actually, I'm doing them for free but billing Congress for my time. With how much that bill is costing, somewhere in there they must have something to help our us poor starving tax preparers 😥
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
When the pork gets peeled back from the bill (law) I HEARD there is a provision for tax preparers having to amend numerous returns.
I heard that at the ACME bar & Grill, it must be true!!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
For your sake, I hope you were just walking by and not eating there 😱
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Most of my clients are long time and all accept the terms of the engagement prior to
preparing their tax returns. My policy RE: 1040-X, if it is my fault, no charge, otherwise I bill them
$150.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Which software are you using ? I am using proseries basic. I have no updates on unemployment yet.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
That was sarcasm. Nobody is going to have any unemployment updates for awhile.
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Using ProSeries Pro......too early probably for these updates...check next week.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thought this may be helpful:
The newly enacted American Rescue Plan Act of 2021. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.
The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.
Have a nice weekend!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Good information, thank you. What was the source of that information ?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
IRS e-News for Tax Professionals | March 13, 2021 |
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
That is a good answer. I think you should increase your billing rate.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
So Now with the extended 2020 1040's deadline of May 17, 2021, IRS however has not extended
the 2021 1st Est 1040 payment of Apr 15th, 2021........why wouldn't they make them the same, since 2020 1040's info probably will be delayed due to the T/P knowing they have more time or some other factors?
Seems to me in my limited expertise, wouldn't it be better if they just do as they did last year, and move everything to the July 15th and be done with making further changes, given all these issues we as accountants are dealing with during these challenging times......PPP's. EIDL's, ERTC, EIP's, possibly more filing of 1040-X's, and of course the Pandemic, and so on?
Granted, I'm sure some of us would rather just get it over with by May 17th and go relax for a few days or weeks on some exotic Island!