The IRS announced that tax season will start on Friday, Feb. 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the recent tax law changes.
The IRS anticipates those who e-file a return claiming the earned income credit (EIC) or additional child tax credit (ACTC) will begin receiving their refund the first week of March, assuming no issues are detected. Taxpayers will need to check Where’s My Refund for their personalized refund date.
Overall, the IRS anticipates 9 out of 10 taxpayers will receive their refund within 21 days of electronically filing, with direct deposit, if there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically. To avoid delays in processing, people should avoid filing paper returns whenever possible.
The IRS does not consider returns held prior to the date it accepts transmission of electronic returns to be stockpiled. EROs and online providers may hold tax returns until the IRS can accept them. EROs and online providers must advise taxpayers that the returns will not be e-filed until the IRS can accept the returns beginning Feb. 12. Be sure to clearly explain to your clients that this means the 21-day period for processing the return and/or checking the refund status cannot begin before Feb. 12.