Just saw IRS Notice 2023-21: Lookback period extended for refunds from 2019 and 2020... what does this mean for me??

How much extra time does this extension actually give us? And do you know if this applies to people who didn't file at all for those years? My brother had some health issues in 2019 and completely missed filing.

The extension typically gives you an additional year beyond the normal three-year window. So for 2019 returns (which would have been due in 2020), instead of the standard three-year deadline, you get an extra year to claim your refund. For non-filers like your brother, this is actually really important. If he was due a refund but never filed, this extension could be his last chance to claim that money before it becomes permanently unclaimed. He should file his original 2019 return as soon as possible - this isn't even an amendment since he never filed originally. The IRS doesn't typically penalize non-filers who are owed refunds, but they do need to file within the statute of limitations to actually get that money.

Does it actually help you file the amended return or just identify what you missed? I'm terrible with tax forms and would need help with the actual filing process too.

Sounds interesting but I'm always wary of tax tools that want my info. Is it secure? And does it work for complicated situations like rental properties? I had a rental in 2019 but wasn't sure about some of the depreciation stuff.

It does both - identifies what you missed and then walks you through the amendment process step by step. It even pre-fills the 1040-X form based on your original return and the changes it identifies, which was super helpful for me. For security, they use bank-level encryption and don't store your documents after analysis. I was hesitant too, but their privacy policy was reassuring. And yes, it handles rental properties! It specifically flagged some depreciation items on my friend's return who has two rental properties. The analysis tool seems pretty comprehensive for most tax situations including self-employment, investments, and property.

How does this even work? The IRS phone system is literally designed to be impossible to navigate. Are they using some kind of backdoor method?

Yeah right. Nothing gets you through to the IRS faster. This sounds like snake oil to me. The IRS is deliberately understaffed and no service can magically create more agents to answer calls.

It's actually pretty straightforward - they use an automated system that navigates the IRS phone tree and waits on hold for you. When they get a human, they call you and connect you directly to that agent. No backdoor or anything sketchy - they're just doing the waiting for you. I had the exact same reaction as you when I first heard about it. I figured it was a scam or wouldn't work. But after spending literally 3 hours on hold one day only to get disconnected, I was desperate enough to try. I was shocked when my phone rang and there was an actual IRS agent on the line. The representative I spoke with was super helpful about my amended return questions related to Notice 2023-21.

The unemployment tax exemption was specifically for 2020 unemployment benefits, not 2019. It was part of the American Rescue Plan Act of 2021 that made the first $10,200 of 2020 unemployment benefits tax-free for those below certain income levels. 2019 unemployment was still fully taxable. That said, this extended lookback period still applies to your 2019 return - just not for unemployment tax exemption. You should check for other possible deductions or credits you might have missed.

Thanks for clarifying! That makes sense - I was mixing up the years. I guess I'll still review my 2019 return for other possible missed deductions since we have this extended time period. I was self-employed part of that year too, so maybe there are some business expenses I overlooked.

Yes, the extension generally applies to business returns as well! It covers Forms 1120, 1120-S, 1065, and other business returns. If your LLC files as a partnership (1065) or S-Corporation (1120-S), you'd amend with Form 1065-X or 1120-X respectively. Just keep in mind that for pass-through entities like partnerships and S-Corps, any changes to the business return might necessitate changes to your personal return as well since the income passes through to your individual tax return.

Great questions! For the supporting documents, you typically only need to include new documentation that supports the changes you're making on your amended return. So if you're adding a charitable deduction you missed, include that receipt. If you're claiming a new business expense, include that documentation. You don't need to re-submit everything from your original return. As for processing times, amended returns are currently taking quite a bit longer than usual - I've seen estimates of 16-20 weeks for most amendments, sometimes longer if they trigger additional review. The IRS is still working through backlogs from the pandemic years. You can check the status of your amended return using the "Where's My Amended Return?" tool on the IRS website about 3 weeks after they receive it. Given this extended lookback period from Notice 2023-21, I'd expect processing times might get even longer as more people file amendments for 2019 and 2020. But don't let that discourage you - if you're owed money, it's definitely worth the wait!