A short YouTube clip by Donna Genie explaining that the IRS has issued preliminary guidance advising some taxpayers to delay filing returns while the agency evaluates whether state-issued rebates are taxable. Donna recommends preparing returns and paying any tax due by April 15 but filing extensions and delaying electronic submission until the extended due date to avoid potential amended returns.
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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, October? Well, our first example of why we want to do this has come about. 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. 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 15 this year. As a bulk order, I would suggest you complete your return. If you have a balance due, pay it by April 15, 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.
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