The IRS announced a delay in starting the tax season. The opening day is now pushed back to February 12, 2021. Read it here:
https://www.forbes.com/sites/kellyphillipserb/2021/01/15/irs-announces-filing-season-open-date-its-later-than-you-expected/?sh=fede7357bee8
This is disappointing because it also means a delay in getting refunds.
I am continuing to work on Corporate, LLC and Partnership returns. States have not issued the same delay statement but many follow the Fed as a matter of course.
This brings to mind my philosophy on Withholding. Many like the idea of getting a refund. They see refunds like a gift etc. But it is important to remember that it was YOUR money to begin with, then you had your Employer withhold more than needed to pay your tax bill and then you get back the over payment. This in effect is giving the Fed a loan. You DON'T get paid interest for this loan. That's very generous of tax payers. I like getting the W-4 completed for the best accuracy of the potential tax bill and adjust Withholding accordingly. That way, the tax bill gets paid during the year and you have access to what would have been a refund.
Of course, some like the enforced "savings" that too much Withholding provides them. Lack of discipline gets replaced by the government holding your cash for a while then returning it as if it's a gift. I get it, but it is an illusion. Why not just keep the "extra" cash in an interest bearing account or Dividend paying Blue Chip or even convert to precious metals for a while. Yes, interest is very low at the present but the overpayment gets NO interest. In the hands of the government they get cash today and give it back degraded by inflation. A new word in the vocabulary of many...INFLATION.
That's my two cents. Be assured I will prepare my client's taxes and file at the earliest available time.
Best,
Donn Marier
DM-Your Own CFO