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Start of tax filing delayed, meaning later refunds

3 min read
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Rick Shrum/Observer-Reporter

Rick Shrum/Observer-Reporter

Jim Martin, owner of Martin’s Tax Service, Washington, in a file photo from February

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Jennifer Schmidt, owner of Jennifer Schmidt Tax and Accounting in Centerville

Some taxpayers are again referring to the Internal Revenue Service as the Infernal Revenue Service.

The federal agency on Jan. 15 delayed the beginning of the 2020 tax-filing season by nearly two weeks, to Feb. 12. For many early filers, that translates to another delay: when your refund will arrive.

Beleaguered under the best of circumstances, the IRS pushed back the filing start date from late January because of a series of burdensome pandemic-related issues it has faced. They include having to send out two stimulus payments in less than a year; a tax-filing deadline for 2019 that was extended from April 15 to July 15; closures of IRS facilities because of COVID-19; late changes to the tax law; and time needed to program and test computer systems following the relief package passage late December.

For more rapid refunds, the agency recommends that taxpayers file as soon as they gather all of their tax documents and select direct deposit for their funds. The IRS reported that about 90% who file electronically, with direct deposit, should get their refund within 21 days.

One thing that hasn’t changed: taxpayers should get their W-2s, 1099s and other tax forms by Monday, Feb. 1.

Befitting his easygoing nature, Jim Martin laughed when asked about the filing delay. The longtime owner of Martin’s Tax Services in Washington is accustomed to annual changes and is prepared for the onus of being a tax preparer this time of year. He endured the filing extension to midsummer last year, which he described as “not pleasant,” so this Feb. 12 edict doesn’t deter him.

“I tell my clients they can file as usual – they can file now,” Martin said. “The IRS will hold them until the 12th, when they start processing returns. People expect to get a quick refund, but if they do direct deposit, they may get their money about 10 days afterward.”

With the pandemic still rampant, early speculation is that the IRS could, again, push the federal filing deadline to July 15 – a prospect that Martin does not relish.

“That’s always a possibility,” he said. “I would prefer that they keep it at April 15. As nice as it was to get a reprieve from April 15 (last year), the work is normally done and over with then. Last summer, I was always running back to the office to do more tax returns.

“But I mostly shrug my shoulders. I’m getting used to things not being as normal.”

Jennifer Schmidt anticipates working into the summer. “I think we’ll see the April 15 deadline system extended,” said the owner of Jennifer Schmidt Tax and Accounting in Centerville. “I would not be surprised if they extend it to July 15.”

Some taxpayers have not yet received refunds for tax year 2019, which were due to be filed in July. Schmidt said the IRS got behind on processing returns last year, and still has those to take care of in addition to the volumes of 2020 returns that will be coming in.

“They’re behind. A lot of workers aren’t there, and you can’t call anyone at the IRS,” Schmidt said. “I don’t think you can ask for everything to be completed by April 15, to get everything done in two months.”

As for the tax-filing delay to Feb. 12, she said the agency “could use a couple of extra weeks.”

So, early filers who won’t get their refunds as early as in the past, heed the advice advice the IRS issued in a statement:

“We ask taxpayers to be patient.”

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