Few Massachusetts residents would argue with the assertion that it has been a tough year so far. With everything that has been going on, many people have struggled financially. This could certainly affect what they do come July 15 when income tax returns and estimated taxes are due, and the IRS is expecting those payments.
As businesses here in Massachusetts and around the country reopen, many feel the crunch as they attempt to catch up on matters that have been unattended to in recent months. And they are not the only ones. The IRS has been stockpiling paperwork and paper returns, and as more employees return to work, they have an arduous task ahead of them. Even as taxpayers must meet the July 15 deadline for filing their federal income tax returns, the agency is not saying how long it will take to get caught up.
Massachusetts residents may feel as though they have no power when it comes to dealing with government agencies other than those provided in the United States Constitution. Fortunately, that is not always true. Certain agencies such as the IRS must provide taxpayers with certain rights when dealing with them.
Many people here in Boston are among the millions of people across the country who are not working right now. Those fortunate enough to receive unemployment benefits are also receiving an extra boost from the federal government to make those payments go further. However, anyone in this position should know that the IRS and the state of Massachusetts tax those benefits, and they need to be prepared for that.
Periodically, Massachusetts taxpayers find themselves opening mail that does not bring the good news. Perhaps the IRS made a decision with which an individual does not agree, but the person does not realize that he or she can challenge it. Doing so is number four on the taxpayer bill of rights.
With everything going on across the country and here in Massachusetts, information comes fast and furiously. While many people are glad to get updates on certain things as timely as possible, it is easy to miss small but important pieces of information they need. For instance, some people may have missed a vital piece of information from the IRS regarding the filing of their 2019 tax returns and the refund they expect.
With the deadline for filing federal income tax returns pushed to July 15, some Boston residents may breathe a sigh of relief that they have one less issue to deal with right now. However, at some point, they will need to turn their attention to getting their federal returns filed, especially if they are expecting a refund. One of the biggest strategic questions when filling out tax forms is whether it would be more advantageous to use the standard deduction or itemize.
Boston residents share one big question with others across the country: how long should they retain their federal income tax returns and their supporting documents. Answering this question may not be as simple as people think. However, the IRS generally only goes back three years for an audit, but that could be extended depending on a person's circumstances.
In recent weeks, life has changed across the country. It is hard to find any one unaffected by recent events, including here in Massachusetts. Trying to keep up with the changes may seem like an uphill battle. For instance, IRS deadlines that most taxpayers used to rely on have changed dramatically recently.
With everything that is going on across the country right now, the federal government is making certain concessions to help the public. One of them has to do with the IRS and income taxes. The news reports may not have been clear enough, and as a result, taxpayers here in Massachusetts and elsewhere could end up in trouble with the IRS.