A host of issues could make filing 2021 taxes more complicated this year on top of the expected delays at the understaffed Internal Revenue Service, which is still processing last year’s returns.
Calling the 2021 tax season “the most challenging year taxpayers and tax professionals have ever experienced,” National Taxpayer Advocate Erin Collins said in her annual report to Congress that she’s also deeply concerned about the upcoming filing season that begins on Jan. 24.
That is because the IRS is already buried in paperwork, with backlogs of 6 million unprocessed individual returns from last year as of December. Tax filers will also have to figure out the impact of Paycheck Protection Program loans, child and dependent tax credits and taxes related to job changes. Those all can involve more calculations than usual, increasing the potential for mistakes, tax experts say.
Almost to underscore the difficulty, the IRS has issued a 32-page frequently-asked-questions document focused exclusively on how to claim a credit for the third economic impact payment if you received only part or none of that money in 2021.
The Bangor Daily News would like to help you sort through the intricacies of this year’s taxes. Let us know your most pressing questions using the form below.