According to the IRS, the number of individual filers of Form 1040 increased by 6.6 million people in 2020. While we’d like to say this was due to people interested in closing that tax gap we’re always talking about, the increase is attributed to the receipt of economic stimulus checks issued by the IRS based on information reported on tax forms. Fair enough.
Going forward with new projections, the IRS believes that approximately four-fifths of all tax returns and 93.8 percent of individual tax returns will be filed electronically by 2027. As noted, the stimulus checks offered under the CARES Act contributed to millions of individual tax filers checking in with the IRS again. Given the likelihood that additional federal aid could be forthcoming, it is likely these filing numbers will be sustained in the coming filing year.
The 2020 tax season was like none other, with deadlines pushed out and the issuance of stimulus checks by IRS personnel trying hard to stay clear of COVID-19 themselves, even as they generated economic aid checks for a country suffering through the pandemic. When the April 15 tax filing deadline was pushed back to July 15, 12 million people still took advantage of extensions that allowed them to file paperwork by October 15 (although taxes were due and owing by July 15).
So far there has been no indication by the IRS that Tax Day will be pushed back again this year. With the first of the year already past us, it is time to start putting together statements, receipts, and forms in order to meet deadlines for individual and corporate returns as well as FBARs to avoid agency interest in offshore tax holdings.
Quick organizing tips for individual tax preparation from the IRS include:
With vaccination programs rolling out across the United States, hopefully Tax Day this year will be uneventful and on-time. If you run into a tax controversy or issues with a report on your foreign bank account, be sure to speak with an experienced tax attorney in your area.
With offices in Chicago and Cleveland, the tax lawyers at Robert J. Fedor, Esq., LLC offer strong legal service if you are dealing with a civil tax audit or a criminal tax charge. Call us at 800-579-0997 or contact us online when you need experienced tax advice.