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The IRS is backlogged and nonetheless sifting by means of tens of thousands and thousands of pending returns, together with a lot of final yr’s filings. If your 2020 return is a part of the pileup, there is a particular step on your 2021 digital submitting.
The company processed greater than 61.9 million returns as of March 11, with the bulk filed digitally and roughly half self-prepared, the IRS reported.
When you self-prepare electronically, the IRS validates your submitting with the earlier yr’s adjusted gross earnings. However, there is a completely different course of for the thousands and thousands of filers with a pending 2020 return.
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If final yr’s return remains to be in limbo, you may must enter $0 on your 2020 AGI when submitting on-line, mentioned National Taxpayer Advocate Erin Collins in a listening to with the House Ways and Means Oversight Subcommittee.
“That manner you’ll be able to file electronically, and you do not have to file a paper return,” she mentioned. “We must get that message out to taxpayers.”
While these instructions solely apply to digital filers, the company urges everybody to file electronically with direct deposit to keep away from delays.
Nearly 94.3% of particular person tax returns had been filed electronically through the fiscal yr 2020, in response to the IRS.
And there are related directions for non-filers, who sometimes embody sure Social Security recipients or these with yearly earnings under the usual deductions.
If you used the non-filer software in 2021 to gather the advance little one tax credit score funds or your stimulus verify, the IRS says to place $1 for final yr’s AGI.
“I’d assume hardly anyone is aware of about that one,” mentioned licensed monetary planner Larry Harris, director of tax companies at Parsec Financial in Asheville, North Carolina.
If you do not comply with these directions, the IRS might not settle for your digital return, mentioned Tommy Lucas, a CFP and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.
“We’ve seen that from people making an attempt to file themselves,” he mentioned, explaining how AGI conflicts might set off a complicated rejection e-mail from their tax-filing software program.
Missing 2020 returns
Your return may be pending should you obtained a CP80 discover a few lacking 2020 return.
If you bought this discover and it nonetheless hasn’t been accepted, it is best to enter $0 on your 2020 AGI when submitting this season, mentioned Lucas.
“They’re going to point out $0 of their system, so that is what I’d begin with,” he mentioned.
But if the IRS rejects your return with a 2020 AGI of $0, they could have processed final yr’s return after sending the discover, Lucas mentioned, which means you’ll be able to refile your 2021 return together with your precise 2020 AGI.
While it could be tough to achieve the IRS by cellphone, you’ll be able to double-check the standing of your 2020 tax return by downloading a free IRS transcript out of your on-line account.