Before everyone leaves town Friday, what are your thoughts on what to expect for the 2021 tax season?
I know, this is like asking how you’re going to vote next month. Some expect a vaccine for Christmas, others point out Dr Fauci was optimistic about an AIDS vaccine 35 years ago.
But I just saw that IRS has a new Form 11446, for VITA sites to use when preparing returns when there is only “virtual” contact with taxpayers. If that’s their plan, should it be ours?
I installed a camera on my desktop and have had occasion to use it for several Zoom meetings (ask me about my favorite advice, never get involved in HOA politics) and a GoToMeeting court hearing (the judge is already seated and the bailiff doesn’t tell everyone to rise). My problem is that many of my clients are past 70, and afraid of computers and smartphones. They probably should be, if they don’t know how to avoid hacking.
As usual, we don’t know what the tax law will be. There may be a second $1,200 EIP payment, and some lame-duck legislation on who qualifies for the first one.
IRS still has millions of pieces of unopened mail, with more to come after October 15. I know people whose refunds have been held up for more than six months since they filed. Does IRS still plan on closing the Fresno service center after the 2021 filing season? How soon will the last temp out the door turn off the lights?
My prediction is that we will see another July 15 filing deadline. I also anticipate a major breakdown of IRS hardware or software. Not sure, which. Maybe both.