Getting Ready for the Tax Season 2023
With the 2023 tax season just around the corner, the highly anticipated E-file shutdown finally has a scheduled date, which can be found on the IRS website provided at the bottom of this page. IRS has officially announced, "Saturday, November 18, 2023, at 11:59 p.m. Eastern time", the 1040 returns will be shutdown for E-filing. What does this mean for before and after the shutdown? There are a lot of very important topics to go over that taxpayers and preparers need to know regarding this date.
To start things off, if this is the first time you are hearing about this, the IRS shutting down the 1040 filings are a normal and regular thing that happens annually. Every year, right before the upcoming tax season begins, IRS updates their system and begins the transition into the following tax season. Right now, you can E-file a 1040 for tax years 2020-2022. Anything prior the tax year 2020, those returns need to be paper filed. Once the the shutdown begins, nobody will be able to E-file 1040's while the shutdown is in effect.
What does this mean for you before the shutdown? If you are one of the many late-filers that are yet to complete their return, you have a short time left to complete your filing before you are unable to E-file until the IRS reopens the 1040 for E-filing again. This is bad news if you have a return that has a tax due, because all the time that it takes for late filing and for having underpaid your estimated taxes, this will accrue penalties and interests. It would be in the taxpayers best interest to finish their tax filings before the November 18th. If your return results as instead a refund due, then you are fortunate enough for not having to worry about penalties and interests for late filing. You would still want to make sure you complete your e-filing soon, but the pressure is lessened so to speak.
What does this mean for after the shutdown? The IRS allows E-filing for the current year's tax return, and the prior 2. This means that if you had a 2020 tax return that needed to be E-filed and you have to E-file that 1040, you effectively no longer will be able to E-file your tax return for 2020 after this November 18th, that is your deadline to have it E-filed. If you don't E-file by that time, then the only solution would be to Paper file your return and Paper filing is notorious for being slow and sometimes unreliable.
Get ahead of the curve and save yourself the headache that delaying your tax preparation could cause. If you need a tax preparer to discuss your taxes and E-file it in a timely fashion, please schedule a free appointment with the Get Started Now button down below.
IRS closing 1040 E-filing News: https://www.eitc.irs.gov/mef-status
