LEXINGTON, Ky. (WDKY) – There are less than two weeks left before the individual tax filing deadline on May 17.
With all the stimulus bills and late tax changes by Congress, it has some accountants calling this the most unusual tax season ever.
CPAs are dealing with a lot of change.
“I have been practicing for 32 years and I have not seen anything as crazy as this season was with all the changes,” CPA Dana Overall said.
Overall says it all starts with the Cares Act in March 2020. Part of the bill allowed people to withdraw from their retirement without penalty… but you had to pay taxes on the income.
“Whenever we deal with that now someone’s tax returns we have to do some calculations is it better to pay on the taxes right now does it kick them up to no tax bracket?” Overall said.
Then came December 27, 2020
Another Covid relief bill with more tax provisions.
“That date was so close to the date the IRS traditionally starts to accept tax returns that the IRS had to even postpone excepting tax returns for another three weeks,” Overall said.
A lot of changes, but, for Overall, it got worse.
“And then in the middle of tax season, at a point where I worked 74 straight days as a result of all these tax changes, Congress passed another Covid relief bill on March the 10th,” Overall said
More tax provisions.
And a week later, the IRS pushed the individual filing due date to May 17.
By that time, some of his 700 clients had already filed for 2020. With all this change, Overall was looking for clarification of the tax law.
“It was to the point where we would update our professional tax software one to two times a week,” Overall said.
Then there were a record number of Kentuckians filing for unemployment to go along with three major Covid relief tax provisions, it was a lot of adjustment for 2020.
“With these three Covid relief bills, it just multiplied all those tax clarifications it was just too much to keep up with but we pulled it off,” Overall said.
Overall says get your information together and get it to your tax preparer. Don’t wait until the last minute because it has been a long tax season for CPAs.