IRS Strongly Urges Taxpayers to Not File Amended Returns Related to ARPA

The IRS just sent NSA the following statement via email:

“The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021 [ARPA]. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.

The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven’t filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.” 

IRS Continues to Work Through Mail Backlog

IRS Continues to Work Through Mail Backlog Consisting of Over 5 Million Unopened Items

The IRS continues to work through its mail backlog, which consists of over 5 million unopened items, according to IRS Commissioner Charles “Chuck” Rettig. Notably, there are an estimated 2.5 million unopened paper income tax returns included within the backlog.

“We are doing everything we can to reduce this backlog, including providing relief for taxpayers who have sent us mail that was unopened for a period of time,” Rettig said during an October 7 House Oversight and Reform Subcommittee on Government Operations hearing. Additionally, the IRS continues to receive approximately 300,000 to 500,000 pieces of mail each week, Rettig noted.

According to Rettig’s written testimony provided to the National Society of Accountants (NSA) by the IRS, some of the following initiatives are taking place:

  • For people who had tax refunds affected by IRS closures, it is paying interest on refunds. These payments, which can sometimes show up as a second deposit, average $18 for nearly 14 million taxpayers.
  • The IRS is also crediting people in instances where there is unopened mail and they are making a payment. The IRS credits people on the date the mail was received, not the day the IRS processes the payment.

For NSA’s full report, click here.