There have been frequent reports in the news about delays at the IRS when it comes to processing returns. Between the COVID-19 stimulus payments, last minute changes to tax laws, and the pandemic in general, the IRS has been behind.
What does this mean for business owners?
It depends. Are you filing your payroll and employment taxes electronically? If the answer is yes, then the delays may not impact you as severely as those businesses that file paper returns.
The IRS has been increasingly encouraging businesses to e-file their payroll and employment taxes. Specifically, the IRS cites three main reasons to file these taxes electronically:
- It saves time
- It’s secure and accurate
- The filer gets an email to confirm the IRS received the form within 24 hours
For those businesses that continue to file paper returns, additional headaches may be in store.