Personal Finance

The Internal Revenue Service (IRS) building in Washington, D.C.

Getty Images

The IRS is delaying the start of the 2020 tax filing season to Feb. 12, according to an announcement from the agency.

On that date, the IRS will start accepting and processing last year’s tax returns.

Normally, the agency opens tax season in late January.

This year, however, the IRS will need more time to prepare following the Covid relief act that took effect in late December.

“If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers,” the IRS said in its announcement.

“These changes ensure that eligible people will receive any remaining stimulus money as a recovery rebate credit when they file their return,” the agency said.

The recovery rebate credit is a new addition to the federal income tax return, and it’s available to filers who didn’t receive the full amount of stimulus they’re entitled to.

“While I am disappointed that this year’s filing season will begin later than usual, I recognize that the IRS has faced extraordinary challenges throughout the COVID crisis,” said House Ways and Means Committee chairman Richard Neal, D-Mass.

“It’s a relief to know that despite contending with the distribution of two rounds of economic impact payments, facility closures and other disruptions, the agency will be able to begin accepting returns within the next month,” he said.

The IRS is recommending that taxpayers submit their returns electronically and use direct deposit as soon as they’re ready.

This is a breaking news story. Please check back for updates.

Articles You May Like

DraftKings shares rise after reporting a beat on revenue, more growth in paying customers
DoorDash stock falls after company drops first earnings report since going public
Warren Buffett says ‘never bet against America’ in letter trumpeting Berkshire’s U.S.-based assets
Drawing down savings, relying on food banks: Americans take emergency actions amid the pandemic, CNBC + Acorns survey finds
Bill Gates: Nuclear power will ‘absolutely’ be politically acceptable again — it’s safer than oil, coal, natural gas