Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Will tax season be extended again?

PATAX
Level 12

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.

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
IRonMaN
Level 15

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.


Sign up here for pot stirring classes - 7:00pm Thursdays

View solution in original post

29 Replies 29
Camp1040
Level 8

You will have to ask @IRonMaN  I believe he has been certified by the community as the go to mind reader! 

Also the ACME Mind Reading School.

jofijohnjoseph
Level 5

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.

 

 

PATAX
Level 12

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

IRonMaN
Level 15

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.


Sign up here for pot stirring classes - 7:00pm Thursdays

View solution in original post

jesdq1
Level 3

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.  

PATAX
Level 12

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..

IRonMaN
Level 15

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? 😬


Sign up here for pot stirring classes - 7:00pm Thursdays
jesdq1
Level 3

Thank you folks 

AmyK1962
Level 3

Is it going to automatically amend all of the returns with unemployment too?  😉

sjrcpa
Level 15

That's a good one. 🤣


ex-AllStar
AmyK1962
Level 3

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!  😉

JONI9611
Level 3

I feel exactly the same.

dude7707
Level 4

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.

 

0 Cheers
Camp1040
Level 8

WOW!  $150

You must have a very high earning clientele base who are eligible to collect unemployment benefits! 

dude7707
Level 4

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?

 

0 Cheers
Camp1040
Level 8

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.

IRonMaN
Level 15

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 😥


Sign up here for pot stirring classes - 7:00pm Thursdays
0 Cheers
Camp1040
Level 8

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!!

IRonMaN
Level 15

For your sake, I hope you were just walking by and not eating there 😱


Sign up here for pot stirring classes - 7:00pm Thursdays
dude7707
Level 4

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. 

IRonMaN
Level 15

@Camp1040 wrote:

WOW!  $150

You must have a very high earning clientele base who are eligible to collect unemployment benefits! 


OUCH!


Sign up here for pot stirring classes - 7:00pm Thursdays
0 Cheers
JONI9611
Level 3

Which software are you using ? I am using proseries basic. I have no updates on unemployment yet.

0 Cheers
IRonMaN
Level 15

That was sarcasm.  Nobody is going to have any unemployment updates for awhile.


Sign up here for pot stirring classes - 7:00pm Thursdays
dude7707
Level 4

Using ProSeries Pro......too early probably for these updates...check next week.

dude7707
Level 4

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!

 

 

jesdq1
Level 3

Good information, thank you. What was the source of that information ?

0 Cheers
dude7707
Level 4

IRS

e-News for Tax Professionals

March 13, 2021

Ember123
Level 3

That is a good answer. I think you should increase your billing rate.

dude7707
Level 4

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!