2020 IRA Changes
2020 IRA Changes Tom takes a look at some IRA changes that came out of the new SECURE Act signed back in December 2019. Give it a watch or if…
October 11th, 2021
Over the past several weeks I’ve been providing last minute planning ideas for your 2020 returns on extension. Today I will concentrate on the remaining details.
Note. E-filing reprieve! Download your e-file confirmations as soon as possible. If an e-filed return is rejected, you have five business days to correct the return and resubmit—the return will still be considered as timely filed (assuming a proper extension was filed back in May).\
Note. Mailing payments after the original due date (May 17 for example) will not remove failure to pay penalties since an extension is in time to file, not in time to pay.
Note. Fear of filing amended returns? In my opinion this is unfounded. With the myriad of tax law changes and interpretations of law (as well as IRS guidance) occurring in the middle of filing seasons, amended filings are becoming a more normal course of business. While it is true that “human eyes” will review paper submitted amended returns and processing may take many months to complete, more recent returns (2019 and 2020 for example) are eligible to be e-filed when amended which may expedite the processing. As with any amended returns you may have filed in the past, even e-filed ones should be submitted with enough information and supporting documents to clearly explain to IRS why an amended return is being filed.
Note. With the many due date changes initiated over the past several years it is advisable to review what the due date was for a late return being filed now as April 15 may not have been the original due date, and the statute of limitations may not have yet been reached. Also, since the collections statute is unlimited for returns never filed, filing a return after the statute of limitations has expired is still a wise move even though the taxpayer will not be issued refunds.
Stay thirsty for knowledge my friends.
By Tom O’Saben, EA
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