IRS Says "Wait a Minute"

Remember when I told you about our new plan for filing extensions for all returns, even though they’re completed and putting them in the marinade until September or October? Well, our first example of why we want to do this has come about.

IRS Guidance

The IRS has issued guidance to tell people in certain states that they should probably hold off on filing their tax returns. It’s only the beginning of February and now they’re going to look into the rules for people who received refunds from their states.

So if you recall, maybe in the last half of the year, several states decided that they had excess funds in the coffers, and they were going to issue rebates back to their taxpayers.

There were a whole list of states, California, South Carolina, several more and now the IRS is concerned about the taxability of those payments, whether or not you’ll need to pay taxes on those.

And just now they’re getting around to thinking: “Hmm, I wonder if those are taxable, we’re going to need to do a little research”.

Hold Off!

So they’ve suggested that many taxpayers hold off on filing their tax returns until they can give you better guidance. Huh! I think this is another example of how we now cannot reliably file tax returns by the deadlines because there’s not even enough guidance and instructions to do it and do it properly, without the chance of having to file an amended return.

So I’ll go back to our plan for this year and remind everyone, I don’t think anybody should be filing their tax return by April 15th this year.

As a bulk order, I would suggest you complete your return, if you have a balance due, pay it by April 15th, but hold the return, don’t transmit the electronic filing until the extended due date of the return.

Make sure you get that extension filed in between so you’re not late. Best of luck to you, and I hope this helps you.

For additional read: Dealing with the IRS

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Donna Bordeaux, CPA with PYOPAccounting.com

Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.