It is that time of year when individuals must gather essential documentation, schedule appointments with a Houston CPA, and file their 2021 tax returns with the Internal Revenue Service (IRS). The tax agency officially began accepting and processing tax returns on January 24 and estimates that most taxpayers should receive any refund within 21 days. That is assuming they file electronically, choose direct deposit, and no issues are found with their return. The latter highlights the importance of having an experienced Houston CPA perform accurate and timely tax preparation services.
This year’s tax season may prove challenging for many taxpayers because of recent tax changes. The expanded child tax credit and economic impact payment – both of which you should have received letters from the IRS about – and the “nearly nine in ten taxpayers” may be eligible to deduct up to $300 for individual taxpayers/$600 for married individuals filing jointly for any monetary donations made to qualifying charities before December 31. There have also been tax changes affecting businesses, highlighting the importance of scheduling an appointment with a CPA.
Add These Key Dates to Your Calendar
Monday, January 24, 2022: The IRS officially began accepting and processing tax returns on this date. According to the tax agency, the earlier date allows them sufficient time to “perform programming and testing critical to ensuring IRS systems run smoothly,” thus promoting efficient processing of individual tax returns. In addition, the IRS estimates that most refunds will be issued within 21 days (IR-2022-08, IRS).
Monday, January 31, 2022: You should have received all applicable wage statements and independent contractor forms by this date. “A 2015 law made it a permanent requirement that employers file copies of their Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements with the Social Security Administration by January 31 (IR-2022-15, IRS).”
Of course, depending on your unique situation, you may receive other essential documents. These include but are not limited to Letter 6419, providing the total amount of advance Child Tax Credit Payments that you received in 2021, along with Letter 6475 detailing the total amount of the third Economic Impact Payment and any Plus-Up payments you may have received. The IRS urges you to wait until you gather all required information before filing to avoid delays and prevent issues. You can begin tax planning and preparation with a Houston CPA, like Hollis Lewis & Company, and upload additional documents as they arrive via a secure firm portal.
Monday, April 18, 2022: Individual tax returns must be filed, or an extension request made by midnight. The most efficient way to ensure acceptance of your return is to file electronically. Taxpayers requesting an extension will have until Monday, October 17, to file, although they must have already paid any taxes owed to the tax agency. Those must have been paid by the April 18 deadline.
Monday, October 17, 2022: While the IRS is urging taxpayers to file an accurate and timely return, the agency understands that is not always possible and offers you until this date to electronically file your return if you had an experienced CPA complete and submit an extension request with the tax agency before the April 18 deadline. Filing after Monday, October 17, could potentially cause you to incur penalties.
Schedule an Appointment with a Houston CPA
Hollis Lewis & Company, PLLC is a Houston CPA firm committed to providing our clients with professional and personalized tax preparation, accounting solutions, and business services. If you are looking for respected financial advisors in either Harris or Montogomery County, our certified public accountants have more than 90 years of combined accounting, business, and tax planning and preparation experience. Make an appointment today by contacting us at either our Clear Lake location, (281) 461-7000, or our The Woodlands office at (281) 364-8888.
Resources:
“Extension of Time to File Your Tax Return.” Internal Revenue Service (IRS).
IR-2022-08. “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline.” Internal Revenue Service (IRS), January 10, 2022.
IR-2022-15. “January 31 wage statement deadline reminder for employers.” Internal Revenue Service (IRS), January 19, 2022.
IR-2022-18. “IRS begins 2022 tax season; urges extra caution for taxpayers to file accurate tax returns electronically to speed refunds, avoid delays.” Internal Revenue Service (IRS), January 24, 2022.
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