2020 Refunds are Taking Longer Than Usual

 

4/26/21

We have never had a year like this as far as the length of time it takes for the IRS to process a Electronically Filed income tax returns and send a refund.

You can check the status of your return using the IRS website "wheres my refund" and this year an unusual number of returns show the status "your return is still being processed" for several days even weeks.

This does not mean that your return is being flagged, this does not mean that your return is being audited.  What is means is that your return is being "processed" - exactly what it says.  

Who is to blame?  The IRS is blaming the complexities of recent tax laws for the delay in "processing" tax returns.

As of 4/23/21 the IRS was holding 29 million tax returns for manual processing.

https://www.accountingtoday.com/news/irs-sees-delays-in-tax-refunds-and-quarterly-payments

Doug Zandstra CPA, CFE, EA

Certified Public Accountant
Certified Fraud Examiner
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503
616 970 3000
dougzandstra.com
email dougzandstra@gmail.com

Home Office Expenses and Deductibility

 This year had a lot of people working from home, and of course, the question arises, can I deduct the expenses ?  After all, I have to had high speed internet, a computer, a desk, office supplies etc..

The answer until 2018 was YES, the answer after 2018 depends on if you are an employee or not.

In 2018, changes were made to the standard deduction and the standard exemption essentially doubled. Employee home office expense were classified as a Itemized Misc Deduction, subject to the 2% floor.  All if the items that were in this category were eliminated.  

At the time, this had a big impact on sales professionals.  Sales people who normally reach into their own pocket to cover expenses found out the only way that they were going to get credit for out of pocket expenses was to get reimbursed by their employers.

This is still the case.  Employers are still able to deduct employee business expenses, so if you find that you are spending your after tax money on your work, you may want to consider asking your employer for assistance!!! 

Below is a link to the IRS newsroom that gives additional information.

https://www.irs.gov/newsroom/irs-reminds-taxpayers-of-the-home-office-deduction-rules-during-small-business-week

Doug Zandstra CPA, CFE, EA

Certified Public Accountant
Certified Fraud Examiner
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503
616 970 3000
dougzandstra.com
email dougzandstra@gmail.com