Amended return opportunities
Retroactive tax relief enacted by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, 3/17/2020) means taking a second look at returns that were filed earlier in 2020.
Now that the July 15 individual tax filing deadline is behind us, tax practitioners should take another look at their clients' returns to ensure tax benefits weren't missed.
Retroactive tax relief brought about by the CARES Act means some taxpayers have significant tax benefits that require a second look at returns that were filed before April 1, 2020. And, the longer-than-usual tax filing deadline of July 15, 2020, for 2019 1040 returns, means some early-filers may have made tax-deductible retirement contributions after filing their 1040s.
Taking advantage of this tax relief will involve amending federal income tax returns, which, for cash strapped individuals and businesses impacted by the COVID-19 crisis, is definitely worth the while.
The longer-than-usual filing deadline of July 15, 2020, coupled with retroactive tax law changes from the CARES Act, create opportunities to amend tax returns and get clients much needed tax refunds. Keep in mind, amending a federal income tax return will likely have a state income tax impact. Practitioners should also determine whether a state income tax return will need to be amended. Happy amending!
For additional tax tips and guidance, explore Thomson Reuters resources such as Federal Tax Handbook 2021, Federal Tax Regulations, Winter 2020, and the Complete Internal Revenue Code, Winter 2021.