Unemployment Tax Waiver:
We have received the necessary guidance to begin filing returns that are impacted by the unemployment tax waiver outlined in the American Rescue Plan Act. Our software has updated to account for most of the changes. We are currently working our way through the impacted returns.
The IRS announced that they will automatically recalculate and refund money to taxpayers who filed their returns prior to the finalization of the unemployment tax waiver. It is anticipated that the IRS will begin issuing these automatic refunds in May. However, some taxpayers may still need to file an amended return to maximize their refund.
Therefore, we are not filing amended returns for clients impacted by the unemployment tax waiver at this time. We are working to identify which of our clients need an amended return to claim the full refund.
The filing deadline was extended to May 17th, 2021 for federal and state tax returns. We are working diligently towards this deadline and will be in contact with you when your returns are finalized.
You have until April 16th to provide us with your 2020 tax documentation.