Bloomberg Tax
Dec. 17, 2020, 9:46 AM

Covid Relief Sets Up Nasty ‘Reckoning’ for Taxpayers Next Season

Allyson Versprille
Allyson Versprille
Reporter
Lydia O'Neal
Lydia O'Neal
Reporter

The upcoming tax filing season is poised to be more confusing and chaotic than normal, with tax professionals predicting Covid-19 relief measures will trigger surprise tax bills and costly filing mistakes.

Among the possible traps for taxpayers are undelivered portions of direct payments to individuals, enhanced unemployment benefits, and forgivable business loans under the Paycheck Protection Program.

Tax return preparers warn, for example, that many people have likely thrown away a key document for claiming the rest of their stimulus checks under the March CARES Act (Public Law 116-136) if they received too little from the IRS this ...

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