February 16, 2022Share:
The tax filing season kicked off last month, but the IRS has already warned that this will be a “frustrating” season for tax professionals and filers. With new returns rolling in the IRS already has a 24-million-return backlog from prior years.
This year’s filing deadline is April 18 because of Emancipation Day in Washington DC falling on April 15. However, we will be completing or extending all returns by Friday April 15th so that our team and clients can enjoy the Easter weekend with their families.
With the strain on the IRS, electronic filing will be more important than ever. Accordingly, we suggest our clients set up IRS online accounts. Once set up, taxpayers will have access to tax transcripts, past tax payments and notices. Taxpayers will also have the ability to add tax representatives. These tax representatives will be able to submit Power of Attorney Forms online.
To add to the challenges, we are continuing to adjust to changes from the Tax Cuts and Jobs Act, CARES Act, Consolidated Appropriations Act of 2020 and the American Rescue Plan. Many of these Acts have provisions that have expired or will expire at the end of 2022. The IRS has also issued a substantial amount of new regulations and reporting requirements including final regulations on bonus depreciation, interest expense limitations, foreign tax credits, partners’ tax balances and created new K-2/K-3 forms.
We don’t plan to get comfortable with these changes, with the potential of the Build Back Better Act looming in the shadows and President Biden’s intention to reconfigure the legislative package. We will continue to stay up on top of 2022 enacted tax provisions to best advise our clients for future planning strategies.
As always, if you have questions, please reach out to our team.