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How Covid-19 is impacting tax season

by | Feb 5, 2021 | Taxes And IRS Concerns |

It is almost that time of year again – tax season.

As COVID-19 pandemic surges on, IRS employees are dealing with additional tasks (i.e. delayed tax season last year and stimulus check payments). As the IRS has pushed the start of tax season to Feb. 12, it is even more important to plan ahead and file early. Also, it may be smart to utilize electronic filing systems with the help of a professional. 

The pandemic has also resulted in the creation of new laws due to the stimulus efforts. If you took advantage of stimulus programs, they may affect your 2020 individual tax return, business tax return, or even both. 

Many of the changes came from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Families First Coronavirus Response Act (FFCRA).  

How COVID-19 is stalling the IRS

Along with all of the other things COVID-19 is delaying, the pandemic has caused a significant increase in processing time for paper returns, returning calls, and reviewing electronic tax returns.

What can you do if you have been impacted?

If you have been impacted by coronavirus through 2020, there are a few things that could help when filing taxes this year. 

The recovery rebate allows you to get tax credits for your dependents. Also, if you did not receive the first or second-round stimulus check, you can claim those credits on your tax return through the Recovery Rebate Credit form. The 7202 form allows you to claim tax credits if you experienced COVID-19 and lost time from work. 

As millions of people have filed for unemployment in 2020, not everyone was granted assistance including those who were self-employed. Now, the IRS is offering some assistance to those out self-employed and out of work because of the pandemic.

Have questions? Contact us at Hurley Law for more assistance.

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