Of course we don't have time to amend now... so this suggestion is easy to follow

[Pacun]

"The IRS strongly urges taxpayers not to file amended returns related to the new legislative provisions or take other unnecessary steps at this time.

The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance." …

[Possi]

But wouldn't it be fun if everybody amended their returns right this minute?

[BulldogTom]

3 hours ago, Possi said:

But wouldn't it be fun if everybody amended their returns right this minute?

Yes....it would....and it would break them.   I for one would like to see it happen.

Tom
Modesto, CA

[Lee B]

16 minutes ago, BulldogTom said:

Yes....it would....and it would break them.   I for one would like to see it happen.

Tom
Modesto, CA

Possi & and Tom, you have a very sick sense of humor

[Lee B]

The most recent information I read are that there are 13 states that tax unemployment benefits who would not conform with the tax exclusion unless these states take action.

[Lion EA]

CT is one of them. CT-NATP is writing legislators for urgent guidance, sooner rather than later. Here's a letter I cut & paste (with typos) that you can use however it works for your state. I'm off to get vaccination #2 and really hoping for no side effects, because I have an S-corp to complete plus two more on extension but need to calculate the CT payments they need to make.

I felt it prudent to let you know what my firm has written to our State Reps about the unemployment. Why not write to yours and as for guidance. Feel free to cut and paste. Thank you Robert Hartmann, CT NATP Secretary for the letter:

"Dear Rep.,

Last night the IRS released more details on how to report the new exclusion of up to $10,200 (per spouse) of Unemployment Compensation. 

We have been recommending to our clients who have received unemployment that they wait to file. We are not ethically thrilled about the prospect of having to file amended returns for a fee to cover our costs, if not time, later in order that taxpayers might receive a portion of their refund now. 

We have been in touch with DRS about this matter but they have had nothing to report thus far. Can you tell us if there is any consideration in the House for CT to exclude unemployment compensation from income tax? 

I’m happy to talk with you about this, especially if we are able to offer input. We are in the office constantly these days if you would like to call."

Click below to find your State Representative and their contact details:

https://www2.cbia.com/ga/CT_State_Representatives/-AZHOUSE

[Slippery Pencil]

13 hours ago, BulldogTom said:

Yes....it would....and it would break them.   I for one would like to see it happen.

So would I, except I think they're already broken but not in the great way that should be.  For one client's 2017 return, "Where's My Amended Return" says, "Your amended return was received on 7/29/20. However, it has not been processed."  It's been At least we know it's been received and isn't sitting in a trailer full of mail in the parking lot.

[Lee B]

The latest reports suggest that the IRS has not been able to make much progress on the over 6 Million 2019 unprocessed tax returns.

[TAXMAN]

I also wonder if they know how many unprocessed 2016 returns they still have. I have several of them that had c/o of credits to 2017.