Avoid pandemic paper delays: Use e-file with direct deposit for faster refunds as IRS prepares to open 2020 filing season
IR-2021-35, February 11, 2021
WASHINGTON – With filing season opening on February 12, the Internal Revenue Service urged taxpayers to take some simple steps to help ensure they file accurate tax returns and speed their tax refunds to avoid a variety of pandemic-related issues.
Although every year the IRS encourages taxpayers to e-file their returns and use direct deposit to receive refunds, to those taxpayers who have previously not used e-file, the IRS emphasizes using it this year to avoid paper-related processing delays. Taxpayers can file electronically by using a tax professional, IRS Free File or other commercial tax preparation software. The IRS cautioned paper-filed tax returns and paper checks will take even longer this year due to a variety of reasons.
Taxpayers have until Thursday, April 15, 2021, to file their 2020 tax return and pay any tax owed. The IRS expects to receive more than 160 million individual tax returns this year with nine out of 10 returns filed electronically. At least eight out of 10 taxpayers get their refunds by using direct deposit.
"The pandemic has created a variety of tax law changes and has created some unique circumstances for this filing season," said IRS Commissioner Chuck Rettig. "To avoid issues, the IRS urges taxpayers to take some simple steps to help ensure they get their refund as quickly as possible, starting with filing electronically and using direct deposit.
"Following months of hard work, we are ready to start this year's tax season," Rettig added. "Getting to this point is always a year-round effort for the IRS and the nation's tax community. Doing it in a continuing COVID-19 environment while simultaneously delivering stimulus payments for the nation is an unprecedented accomplishment by IRS employees. I also want to thank all our tax partners and tax professionals for their hard work that makes tax time smoother for the nation. All of us stand ready to serve America's taxpayers during this important filing season."
Wage and Investment Commissioner and Chief Taxpayer Experience Officer Ken Corbin provide an in-depth perspective on how the IRS is preparing for a successful filing season in this A Closer Look column.
See more: [Avoid pandemic paper delays: Use e-file with direct deposit for faster refunds as IRS prepares to open 2020 filing season | Internal Revenue Service|https://www.irs.gov/newsroom/avoid-pandemic-paper-delays-use-e-file-with-direct-deposit-for-faster-refunds-as-irs-prepares-to-open-2020-filing-season]
Double-check for missing or incorrect Forms W-2, 1099 before filing taxes
IR-2021-33, February 9, 2021
WASHINGTON — With some areas seeing mail delays, the Internal Revenue Service reminds taxpayers to double-check to make sure they have all of their tax documents, including Forms W-2 and 1099, before filing a tax return.
The IRS reminds taxpayers that many of these forms may be available online. When other options aren't available, taxpayers who haven't received a W-2 or Form 1099 should contact the employer, payer, or issuing agency directly to request the missing documents before filing their 2020 federal tax return. This also applies to those who received an incorrect W-2 or Form 1099.
Those who don't get a response, are unable to reach the employer/payer/issuing agency, or cannot otherwise get copies or corrected copies of their Forms W-2 or 1099 must still file their tax return on time by the April 15 deadline (or October 15 if requesting an automatic extension). They may need to use Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. to avoid filing an incomplete or amended return.
If the taxpayer doesn't receive the missing or corrected form in time to file their tax return by the April deadline, they may estimate the wages or payments made to them, as well as any taxes withheld. Use Form 4852 to report this information on their federal tax return.
If the taxpayer receives the missing or corrected Form W-2 or Form 1099-R after filing their return and the information differs from their previous estimate, they must file Form 1040-X, Amended U.S. Individual Income Tax Return. For additional information on filing an amended return, see Topic No. 308 and Should I File an Amended Return?
Taxpayers should allow enough time for tax records to arrive in the mail before filing their 2020 tax returns. In a normal year, most taxpayers should have received income documents near the end of January, including:
Forms W-2, Wage, and Tax Statement
Form 1099-MISC, Miscellaneous Income
Form 1099-INT, Interest Income
Form 1099-NEC, Nonemployee Compensation
Form 1099-G, Certain Government Payments; like unemployment compensation or state tax refund
See more: [Double-check for missing or incorrect Forms W-2, 1099 before filing taxes | Internal Revenue Service (irs.gov)|https://www.irs.gov/newsroom/double-check-for-missing-or-incorrect-forms-w-2-1099-before-filing-taxes]
