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In this episode of the Planned Solutions Incorporated Podcast, The US economy contracted 3.5% in 2020 posting the largest calendar-year decline since 1946. While this is a large decline it represents a big recovery from the sharp decline in economic activity that occurred in the second quarter of 2020. The first half of the year was defined by a decline in consumer spending and investment and a surge in government spending. The second half of the year it shifted to a recovery in household spending and investment and a decline in government spending. Also, The current focus of the Biden Administration has been to negotiate another round of Coronavirus stimulus with congressional leaders. This may include a third round of direct payments to US households; however, the amount of the payments and which households will receive them are currently being debated. And, In the past, the IRS has only issued Personal Identification Numbers (PINs) to the taxpayer who was the victim of tax-related identity theft in the past. Now, the IRS has announced that any taxpayer may apply for an IRS PIN by going to the IRS website and requesting a PIN. Once the PIN is issued this number will be required to file a personal income tax return. Taxpayers who request a PIN and fail to include it on their tax return will have their return rejected by the IRS. Plus a look at the Planned Solutions Incorporated Office Bulletin Board-Many tax forms may be delayed this year as companies work to issue tax forms while maintaining social distancing in their offices and printing facilities. Therefore, we may need to be more patient this year to make sure we have all of the forms needed to file an accurate income tax return. While a speedy refund is nice it is more important to make sure a return is filed accurately to avoid issues down the road. The IRS will be accepting tax returns for the 2020 tax year starting on February 12th. However, not all IRS forms and instructions have been finalized yet. Therefore, the processing of some tax returns may be delayed past the 12th if the return contains any of the forms that are still in draft form. As a matter of policy, it is best to wait until all forms have been updated to avoid the need to amend a tax return due to changes in the tax calculations. We will continue to monitor this closely and finalize tax returns as soon as it is prudent to do so. Chase Armer's book- Financial Planning Insights is now available at: store.bookbaby.com/book/financial-…anning-insights www.amazon.com/Financial-Plannin…1586894022&sr=8-1 To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail Katie@PlannedSolutions.com The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action. Planned Solutions, Inc. ADDRESS: PHONE: 1130 Iron Point Road, Suite 170 (916) 361-0100 Folsom, CA 95630 (800) 750-2111 E-MAIL: FAX: Shannon@PlannedSolutions.com (916) 361-0191 WEB SITE: www.PlannedSolutions.com #finance #invest #investment #stocks #inflation #deflation #bonds