Tax filing season is looming again, with the IRS saying they will begin accepting returns between January 24th and 30th. However, it is possible that the IRS will delay the start of tax season a week or so beyond that, and returns containing Earned Income Tax (EITC) or Child Tax (CTC) credits may have refunds delayed until March so that credits can be verified.  Pass-through business returns will begin being accepted soon as well and will have a filing deadline of March 15th, which allows time for K-1s for owners and investors to be issued in time for the April personal filing deadline. This year that deadline will fall on April 18th for most, due to Good Friday falling on the 15th this year (19th in Maine and Massachusetts with Patriots Day falling on the 18th). 

This year the IRS will be sending documents related to the third Economic Impact Payment (stimulus) and the Advanced Child Tax Credit payments made in 2021.  These notices are not something that people have received in prior years, so many may not realize what they are for and how important they are.  THESE ARE VERY IMPORTANT DOCUMENTS (especially the advanced CTC payment notice) AND SHOULD BE KEPT AND GIVEN TO THE TAX PREPARER!  Many people who are used to getting refunds have received advanced CTC payments throughout 2021 and may be surprised to learn that they possibly will not only NOT receive that large refund, but may even owe tax when everything is settled up on the tax return.  If needed, the IRS will approve payment plans as part of the tax filings (small fees apply) as long as the amount due isn’t too large.