![]() ![]() "It just snowballs into a terrible situation."ĭelays in processing tax returns count as one of the agency's most pressing problems, Collins said in her report, which described an agency in crisis.Īmericans are hearing the message: Potential IRS processing delays ranked second among the three top concerns of people who are expecting a refund from the IRS this year, according to a poll of almost 2,500 people released February 22. ![]() Everson, vice chairman at Alliantgroup and former Commissioner of the IRS. "The first thing you know if you are going to cook a meal, you have to have the kitchen cleaned up from the last meal," said Mark W. Collins issued a report to Congress in January that warned she is "deeply concerned about the upcoming filing season" given the backlog, among other issues. In the meantime, tax experts say there are some steps that taxpayers can take to help ensure a quick tax refund, which is even more important this year given that the IRS is starting with a backlog. It's important to note that processing time typically slows down as the tax season gets underway and the IRS handles more returns, the publication added. If all goes well, though, taxpayers who e-file can receive their refunds via direct deposit as quickly as one week after filing based on previous years' processing time, according to trade publication CPA Advisor. "People may not realize the letter could be wrong, and what is the IRS doing to send out a follow-up communication to stop creating a bigger backlog in the coming season?" he said on a conference call to discuss tax professionals' concerns about the current tax season. The IRS is asking taxpayers to refer to the letter when filling out their tax return.īut if that happens, that taxpayer's return may not match what the IRS has on file, leading to the return getting flagged - and delays in getting their return processed and their refund sent to them, said Larry Gray, a CPA and government relations liaison for the National Association of Tax Professionals. The IRS also said on February 14 that some of its Child Tax Credit letters - letter 6419 - included incorrect information about the amount some taxpayers received. Some taxpayers may also inadvertently claim the wrong amount on their tax returns this year - and through no fault of their own. The IRS on February 14 said tax returns with errors involving the third stimulus check, which are missing information or which have suspected fraud or theft could take up to 90 to 120 days to resolve. The tool will provide information about three phases of processing: Alerting the taxpayer when their return is received, when their refund is approved and when the refund is sent. The IRS says people can start checking the status of their refund within 24 hours after an electronically filed return is received by the agency, or four weeks after a taxpayer mails a paper return. And some taxpayers are already reporting receiving their refunds, according to posts on social media. That may make taxpayers nervous about delays in 2022, but most Americans should get their refunds within 21 days of filing, according to the IRS. IRS is in crisis, Taxpayer Advocate warns.As of December 31, the agency had 6 million unprocessed individual returns - a significant reduction from a backlog of 30 million in May, but far higher than the 1 million unprocessed returns that is more typical around the start of tax season. That's largely due to the IRS' sizable backlog of returns from 2021. ![]() Treasury Department officials warned in January that this year's tax season will be a challenge with the IRS starting to process returns on January 24. But with this tax season now in progress, taxpayers could see a repeat of last year's snarls in processing, when more than 30 million taxpayers had their returns - and refunds - held up by the IRS. Three in four Americans receive an annual tax refund from the IRS, which often is a family's biggest check of the year. ![]()
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