Opinion: Californians told to delay filing their taxes should expect much more from the IRS [Opinion]
whether the refunds — and such payments in other states — were untaxable gifts or taxable income. It wants Californians to delay filing returns.This uncertainty affects 16.5 million state households that received payments from $200 to $1,050 but can’t file with confidence in how the agency will respond. Among those who think this is ridiculous and unacceptable is the IRS’ internal watchdog.
In aon Thursday, the office of the National Taxpayer Advocate wrote, “This was a known issue, with ramifications for tens of millions of taxpayers, tax return preparers and tax software developers. The failure to have identified and resolved this issue before the filing season suggests that someone, or everyone, was asleep at the switch.
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