The tax
season this year – 2020 taxes filed in 2021 – will be unlike recent years for
many reasons. One major change is the almost certain delays you may expect in
connection with the preparation and filing of your taxes. The potential for
delay is based on several factors, most of which will be out of your control
but which you may want to understand and allow for this year. First, we
have the substantial backlog at the IRS for 2019 returns that have NOT yet been
processed. Between individual returns and business returns, over ten million
are outstanding. This could not only affect the taxpayers whose returns haven’t
been addressed but also contribute to a delay for many of the rest of us. In a good
year, many filings are delayed by late arriving K-1s and 1099s, a problem
mainly attributable to the slowness of individuals, businesses and other
entities to gather the information and prepare the required forms. Naturally,
this is less of an issue where the forms are delivered to the taxpayer
electronically but there is always a wait for them to be prepared. This year,
the second factor relates directly to these required forms most of us need to
prepare our returns. The factor, much more troubling than the IRS backlog, is
the abject failure of the USPS to handle first class mail expeditiously,
particularly in recent months. In the last
two months, we have seen or have heard from credible sources that first class
mail often has been arriving two weeks or more (and as much as five weeks)
AFTER the mailing date as indicated by the cancellation of the postage. There is
nothing first class about this treatment and it erodes trust in the postal
service. If you , like many of us, typically receive some tax documents in the
mail, be prepared to wait indefinitely for it to arrive. Please note,
however, that some first class mail seems to be arriving within a week of its
mailing and so is not nearly as problematic. The inconsistency in treatment and
the lack of any meaningful explanation are reminders to stay alert and know
when something should be arriving and be prepared to take action when it does
not. |