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Unemployment

momma1
Level 2

has a decision been made on how to handle the new unemployment forgiveness of $10,000 for unemployment payments made to tax payers in 2020 and returns have already been filed? Are we suppose to amend all returns.  Clients are calling and expecting returns to be amended.

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6 Replies 6
BobKamman
Level 13
abctax55
Level 15

"... Clients are calling and expecting returns to be amended."

OK - who's in charge? YOU?  the IRS?  or the client.

The IRS (if you go look at the guidance THEY have issued) says to wait.

If your client can't/won't comprehend that.... well, personally/professionally I would FIRE THEM.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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PATAX
Level 9

Just say Amityville.....GEEEEET OUUUUUT.

qbteachmt
Level 15

"Clients are calling and expecting returns to be amended."

Read the IRS info: https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

"The IRS is reviewing implementation plans for 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."

 

I think they make it pretty clear they don't want amended returns to be filed at this time.

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BobKamman
Level 13

"The IRS especially urges married couples not to think about filing superseding returns until after April 15, when it will be too late. Saves us a lot of work, and saves the government a lot of cash."

Accountant-Man
Level 11

Are you charging for the amended? It's not your fault Congress changed the law. 

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