U.S. Treasury officials last week warned of expected significant delays in processing tax returns and refunds for the 2022 season.
The IRS is still dealing with backups in processing returns from the past two filing seasons and the continuing pandemic is causing staff shortages, officials said. Normally at the start of tax season the IRS has about 1 million items in its backlog but the current backlog totals more than 6 million items, officials said.
The IRS is urging taxpayers to file electronically and request direct deposit – instead of a mailed check – for quicker turnaround.
"The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don't face processing delays,” IRS Commissioner Chuck Rettig said. “Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year.”
The IRS also is encouraging taxpayers to file complete and accurate returns, which can also help avoid processing delays, refund delays and later IRS notices. This is especially important for who received advance Child Tax Credit payments or Economic Impact Payments (American Rescue Plan stimulus payments) in 2021.
Taxpayers who received these special payments will need the amounts when preparing their tax return. The IRS is mailing special letters to recipients and they can also check amounts received on IRS.gov. More information about this can be found here.
Overall, the IRS anticipates most taxpayers will receive their refund within 21 days of – its typical turnaround – when they file electronically if they choose direct deposit and there are no issues with their tax return.
Returns can be filed as early as Jan. 24, with the tax filing deadline set at April 18 for most taxpayers because of a Washington, D.C. holiday on Friday, April 15. Taxpayers in Maine and Massachusetts have until April 19 to file because of the Patriots’ Day holiday in those states.
For our clients, using our SafeSend Returns system not only better protects your information, it helps get your return – and any refund – processed quicker. Get more details here.
If you have a complex return, such as for a business with revenue more than $3M or an involved personal return with multiple K1s or trusts, and want to ensure your return is complete and accurate as the IRS requires, contact our office to schedule a consultation.
