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3 Tax Lessons Learned From The Pandemic

There are so many tax lessons to be learned from the virus pandemic that it’s quite difficult to narrow the list down to the top three. However, we will give our best attempt in this article. Before we get to the list, let’s send a big thank you to all the tax professionals who have and continue to go above and beyond to help their clients navigate these difficult times. Let’s get to it, shall we?

1. Don’t Believe Everything You Hear and See in the News

I can’t tell you how many times during this pandemic that FAKE NEWS was predominant. When it comes to what the IRS has done, is doing, or will do in the future, everyone has an opinion. From the delivery times for the stimulus checks, the requirements to be able to receive a stimulus check, the extension of time to file and pay federal taxes, and even if IRS tax payments are delayed until a later time. To protect yourself from unnecessary anxiety and fear, try to limit your screen time. We often take for granted that we control the screen time for our children, but the truth is that we also need to control our own screen time as adults. Also, remember, news is meant to inform rather than entertain. It’s really hard to tell now what the real focus of news is.

2. Get the Facts

Nowadays, you need a healthy level of suspicion to get past them all FAKE NEWS about the IRS and how they are going to bankrupt us. I have been quite encouraged by the work the IRS has done during this pandemic. The way the IRS was able to efficiently deliver millions of stimulus checks to help countless Americans who needed this help was simply amazing. Or, how about the way the IRS without much political stonewalling extended both the filing and payment deadline from April 15th to July 15th. Pretty awesome, right? What is the single source that formed my opinion about the IRS? It’s the IRS, of course. Do you know how to quickly remove rumors and FAKE NEWS? Make the effort, go to the source, and get the facts!!!

3. Find Help When Needed

Yes, this one right here is the main point in this list. Over the last 10 years, there has been pressure for people to prepare and file their own tax returns. I’ll admit that most of the well-known tax preparation programs have gotten a lot better. The added service of having tax professionals available to help guide you through the preparation and filing of your tax return makes it even better. In my opinion, however, this works for people with simple incomes such as those individuals who work one job, do not save for retirement, rent or own a home, and are single or married without children or other dependents. However, for those who work more than one job, have a side hustle or part-time business, except for retirement in both their jobs and outside of work (ie IRAs), and are single or married with dependents (adults or children ), the tax code gets a little more interesting. We should also mention that during this pandemic, the IRS has actually shut down operations temporarily. What do you do when the source is not available? This is when you need the help of a trusted tax professional such as a tax advisor or tax consultant. These professionals have worked with the IRS for years and know the tax preparation process as well as how and why the IRS works the way it does. When you’re stuck and need help solving a problem you’re having with the IRS, find a trusted tax advisor or tax consultant and save time, effort and money.

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