March 31, 2021, Wednesday
Tax season has been officially extended to May 17, 2021. While payments are due in May, if you still need more time to file the return itself, you can file for an extension by mailing Form 4868, or call us and have us file your extension electronically. The final deadline to be on time if you filed an extension is October 15, 2021. For Alabama residents, the deadline for your AL 40 tax return has also been extended and is due by May 17, 2021, however, may offer an automatic filing extension.
The IRS announced on March 26th that personal protective equipment for the primary purpose of preventing the spread of COVID-19 are considered amounts paid for medical care under § 213(d) of the Internal Revenue Code. Therefore, items such as masks and hand sanitizer are considered qualified medical expenses and are deductible on your tax return.
Many refunds have been delayed while tax returns are stuck in processing. The IRS assures taxpayers their system is not experiencing delays and claims that the issues lie in errors on the return, incomplete information, affected by identity theft or fraud, or contains certain refundable credits. The stimulus is technically a refundable credit. If you have incorrectly reported the amount of the stimulus you received, your tax return will be slowed down as the IRS evaluates your tax return and sends you a letter to explain the corrections they wish to make to your tax return. Calling the IRS or your tax preparer will not expedite your refund. The IRS telephone assistors and your tax preparer will only have the same information provided to you by the Where's My Refund? tool.
Due to many fraudulent tax returns being filed by identity thieves to steal stimulus money, there has been a marked uptick in the number of tax payers who are receiving letters to confirm their identity before receiving their refund. If you receive such a letter, do not panic. It does not necessarily mean your identity has been stolen; the IRS just wants to verify that it was actually you who filed a tax return.
A. Sanford, CTP
I have been working in tax offices since 2006, preparing tax returns since 2010, and earned my Chartered Tax Professional certification in 2020.
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