Extended tax season?

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#1
Wiles  
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#2
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I really don't understand this line of reasoning. Many Americans not able to pay? Okay I get that. But not able to file on time?

What's preventing anyone from filing an extension? Worse case, if someone is in the hospital with COVID and fails to meet the filing deadline and file an extension, there's reasonable cause for abatement there.
 

#3
Wiles  
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#4
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Given the state of the IRS currently, I think it makes sense to extend the deadline again this year.
I've had to call the IRS twice this week along for payments that went to the IRS in Aug 2020, and were cleared/cashed but not applied to the clients account. One was electronic, one was a mailed check with the SSN and tax period clearly indicated in the code on the back of the check. For BOTH of these cases, the IRS has sent Intent to Levy notices in Dec/Jan a full 3-4 months after payments cleared.
I'm also still waiting for multiple past years paper filed returns to be processed by the IRS that were sent in prior to July 15th 2020.

I am biased though, as I'm trying to juggle a day job and growing side work.
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They seem to mention the free file in this letter so I think they are talking about free file clinics being overwhelmed with people needing assistance to file?
 

#5
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The issue last year is that we were walking into the unknown. Although there are still uncertainties, I should hope every professional firm has taken steps in the last year to adjust to the new normal. Therefore, there is no need for an extension to the April 15th deadline.

As it happens, in view of the lateness of consolidated forms 1099, I believe a deadline of May 15th would be appropriate but that is a whole other discussion.
 

#6
Wiles  
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And the lateness of whether or not unemployment is tax free or not.

And the lateness of states deciding whether to tax PPP or not.

I do like 5/15. Please don't make it 7/15 again. But if you do, I'm taking my vacations now.
 

#7
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If they're going to make it 7/15 again this year, they may as well just make it 7/15 permanently.

All they're doing is just kicking the can down the road.
 

#8
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If we got 7/15 permanently, would the extended due date be abolished?
 

#9
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I just wish they'd make extensions automatic without filing the forms so that we don't need to waste everyone's time and effort. The taxes could still be due 4/15 for all I care.

SumwunLost wrote:If we got 7/15 permanently, would the extended due date be abolished?


The problem with a 7/15 hard deadline is that S corps and partnerships can still extend to 9/15.
 

#10
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Aye, and therein lies the problem, Missingdonut. Would a 7/15 deadline apply to all calendar year tax returns?
 

#11
Wiles  
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I do hate wasting time processing extns and sending vouchers out on 3/15 for tax returns that are in process or we are holding until we finish the 1040.
 

#12
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SumwunLost wrote:Aye, and therein lies the problem, Missingdonut. Would a 7/15 deadline apply to all calendar year tax returns?


I mean, they got Congress to realign due dates so that passthroughs were due 9/15 and 9/30 for 10/15 personal filings, so you'd probably have to move those due dates to 6/15 and 6/30 to make the system work.

Then again, I'm not a proponent of a 7/15 due date.
 

#13
EZTAX  
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Some of us are still operating store front operations and not dealing with just higher income tax payers. Dealing with this in Covid is a real challenge. Add in forms not yet ready, new laws to understand, the challenge of the stimuli payments etc.- an extension of time will be greatly appreciated.
 

#14
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Things have gotten so late coming out over the past several years: updated tax software due to last minute law changes, 1099's (don't get some from the major brokerages until March), etc. Now we have all of the new laws with no real guidance on lots of things, and Congress looking at making some things retroactive to 2020. To me everything is a mess and I don't see it getting any better any time soon. Congress should be working on future tax law, not retroactive. It is almost impossible to do tax planning any more. I think they should permanently move business returns (corporate/partnerships) to a 4-15 deadline and individual deadlines to 6-15. Then allow a 4 month extension for each. We could take on more clients and still work at a more relaxed pace (if we wanted to).
 

#15
HowardS  
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If they extend the April 15 deadline I hope they don't announce it until April 14.
Retired, no salvage value.
 

#16
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6 pm eastern time on April 15th would be better.
 

#17
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Seaside CPA wrote:Things have gotten so late coming out over the past several years: updated tax software due to last minute law changes, 1099's (don't get some from the major brokerages until March), etc. Now we have all of the new laws with no real guidance on lots of things, and Congress looking at making some things retroactive to 2020. To me everything is a mess and I don't see it getting any better any time soon. Congress should be working on future tax law, not retroactive. It is almost impossible to do tax planning any more. I think they should permanently move business returns (corporate/partnerships) to a 4-15 deadline and individual deadlines to 6-15. Then allow a 4 month extension for each. We could take on more clients and still work at a more relaxed pace (if we wanted to).


I think the cure is to stop with the retroactive tax law, not to give them more time to write retroactive tax law.
 

#18
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I hate to have to admit that our entire office is hoping for some kind of delay. Maybe not until 7/15 but June 15 would not be bad. We use ProFx and I have never seen these kind of delays causing major back ups. Simple forms like the 8606, 8995, 8889, etc and states way behind as well.

Spent so much time waiting for guidance on PPP even though we told everyone not to apply for forgiveness and the deal8ng with PPP2. We are looking at record extensions unless they extend
 

#19
zl28  
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agree with Berkshire...alot of time with PPP...and also staffing issues in this Covid environment. Though i'd like the tax deadline to be permanently changed to 5/1.
 

#20
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I just ran some preliminary numbers for comparison

In 2019 we had 110 returns done and out the door
In 2020 we had 120
In 2021 as of today was have 72

Now most of the returns have been the non complicated type but that is historically the case. I have only worked on maybe 5 personal returns as I do mostly corporate. I have six 11/30 year end S corps so I had sort of been oblivious to the drop in 1040 numbers. These national chains like Liberty and Block most really be feeling it
 

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