The IRS has some catching up to do. In fact they are so backed up that they are urging Americans to not mail in their tax returns in the next few months, because chances are they wouldn’t get to them for months.
The problem is a serious one, as almost 7 million paper tax returns remain unprocessed from last year, which is about 40% of individual returns filed, so if you are planning on seeing a refund this year it’s critical you file electronically.
On Friday, the IRS announced a deal to the start of the 2021 tax season which usually begins at the end of January. It has been pushed to February 12, so they won’t have any even bigger backlog to deal with than they already do.
This delay in the tax season is going to push back by a few weeks when many people will be receiving their tax refunds until the beginning of March. The IRS said that 90% of taxpayers who file their return electronically will receive their refund within 24 days of filing. “Given the pandemic, this is one of the nation’s most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible, IRS Commissioner Charles Rettig said.
Here’s a little big of good news for those that will be receiving a refund a little bit layer than they hoped. The delay means that the IRS will pay interest charges on refunds that ware issued too slowly.
For those needing help filing their returns, the IRS opened up free online tax preparation software, which is available for anyone who’s income in 2020 was under $72,000.