2020 Tax Return Still Being Processed?

[Patrick Michael]

From NATP:

IR-2022-18 notes that people whose tax returns from 2020 have not yet been processed can still file their 2021 tax returns. When e-filing, taxpayers need their AGI from their most recent tax return. For those waiting on their 2020 tax return to be processed, IR-2022-18 also states to enter $0 (zero dollars) for last year’s AGI on the 2021 tax return. If the taxpayer used the non-filers tool in 2021 to register for an advance child tax credit payment or third economic impact payment in 2021, enter $1 as the prior year AGI.

 

[kathyc2]

I believe that only applies to self prepared returns.

I vaguely remember eons ago, we had to enter that. But, pros haven't needed to do so for at least a decade. 

[JohnH]

Another interesting twist to this issue of 2020 returns still being processed.  Within the past 3 days, 2 clients who filed by paper have given me CP80 letters from IRS.  Each letter cites a payment that was made for 2020 (balance due on the return and a check processed), but no return filed.  The letter warns of potentially losing the credit and has an instruction to send a newly-signed copy of the return to Kansas City. So naturally that scares the client and they want to do something. 

It's clear to me that the ACS system is working fine, but nobody has bothered to interrupt the process in light of the fact that IRS is still sitting on millions of unprocessed returns.  While they tell us to be patient and not file another return, the boiler plate on the CP80 gives exactly opposite instructions.  I know IRS has a huge task on their hands, but they're creating another level of confusion by allowing the automated process to grind away without regard for the realities.

[Lee B]

I have seen news articles recently saying that professional and political pressure on the IRS is building to have the IRS administratively relax the ACS procedures.

So far the IRS is saying that these responses are mandated by law.

 

[Lynn EA USTCP in Louisiana]

Article today (I think) says IRS will d/c sending CP80 letters but the other letters will continue until congress mandates otherwise 

[Lion EA]

Had a dad panic last summer (I think the IRS turned back on automatic dunning letters about July) and pay a second time (online both times) for his two children's 2020 returns when he got the letters threatening to levy. I calmed him down when the first letters came, but the second set of letters spooked him while laying in bed awake in pain and on meds following hip replacement, so he got up in the middle of the night and paid online a second time for both kids. I have no idea how to get back his excess payments! In normal times, I'd probably include it as ES on the 2021 returns -- but nowadays that will just hold up processing the 2021 returns, I imagine.