Here We Go Again – IRS Opens Tax Season on January 24th

Starting on January 24th this year you can file your 2021tax returns with the IRS. Those taxpayers expecting a tax refund are often the early filers. However, this year, despite being an early bird getting your tax return filed, you may still find your refund delayed.

Every indication points to the fact that the IRS is suffering a backlog like never before. More than 6 million individual 2021 tax returns have yet to be processed. Considering all that’s been going on the past couple of years, it’s not surprising. According to the National Taxpayer Advocate Service, an independent resource for taxpayers within the IRS, “at a time when the IRS was charged with dispersing several rounds of federal economic relief to help Americans weather the COVID-19 pandemic, inadequate staffing, mounds of paperwork and a heightened workload made 2021 the most challenging year taxpayers and tax professionals have ever experienced.”
https://www.usatoday.com/story/money/2022/01/12/irs-2022-tax-season-challenges/9161470002/

The Delays Affect Everyone Not Just Individual Taxpayers

Each year the National Taxpayer Advocate Service is tasked with submitting a report to Congress that notes the 10 most serious challenges for taxpayers. Those issues ranged last tax season from sluggish processing to the ways collection rules hurt lower income taxpayers. 

According to the report, “By the end of 2021, the IRS had yet to process 6 million original individual returns, another 2.3 million amended individual returns, and over 2 million quarterly tax forms submitted by employers. That mountain of paper meant many of the 77% of Americans who get refunds still hadn’t received them by late December, even though they’d filed their returns in April or shortly after.” https://www.usatoday.com/story/money/2022/01/12/irs-2022-tax-season-challenges/9161470002/

No Mistakes Mean No Delays

The best way to assure your tax return will be processed without delay is to file electronically, have your refund deposited electronically, and most importantly, to have no mistakes on your tax return. That may be asking a lot for those taxpayers who received advance Child Tax Credit payments or Economic Impact Payments in 2021. You’ll need to have the correct amounts of those payments before you can file. If these numbers are incorrect, you can expect delays and possibly IRS notices later this year.

The IRS anticipates that there will be many mistakes on returns from the taxpayers who received these tax credits for children or stimulus payments in 2021. Hoping to help taxpayers avoid those mistakes, the IRS is mailing letters to recipients and the correct amounts received can also be checked on the IRS website.

A Good, Thorough, Reliable Tax Preparer Is Your Best Bet For Mistake-Free Returns

Having a tax preparer that stays current and knows the ins and outs of all the latest laws regarding taxes is your best bet for mistake free tax returns. However, even a tax preparer that has all of the correct information can unknowingly make mistakes. A really good tax preparer will ask questions and request documentation perhaps to the point of annoyance. But rest assured, it’s much better for you to be annoyed with your tax preparer than for the IRS to be after you for mistakes! Give IRSALLSTARs a call. We make every tax season less stressful for you and the overburdened IRS.

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