The 2021 tax season created chaos for the IRS as they were both overloaded and understaffed. This resulted in substandard telephone service and delayed refunds. This year things will be even worse.
Deadlines to Note
April 18, 2022, is the deadline for tax returns. This date will only change if the President and the Secretary of the Treasury decide a delay is necessary and change the due date. Otherwise, personal income tax returns are due April 18, 2022. If you can’t file your return on time you can file an extension and receive an additional six months to file your return which will then be due October 17, 2022. However, for those that owe money to the IRS, the amount you owe is still due by April 18, 2022, regardless of your extension filing.
A Huge Backlog Still Exist
The IRS usually has an unaddressed backlog of approximately 1 million returns. This year it has a backlog several times larger. As of December 23, 2021, the IRS website said it still had 6 million returns to process. This does not include the amended returns, of which there are more than 2 million to still be processed.
The good news is that the IRS does a better job of processing electronically filed returns than paper-filed returns. Keep that in mind when filing your return if you complete your own taxes or when selecting an accountant.
Speaking to the IRS
If you need to speak to the IRS you have a very slim chance of having your phone call answered. The prediction is that only 9% of phone calls will be answered during tax season. The best way to get through is to prepare and to help with that, we have a quick Tax Call Prep Checklist:
- Gather a hot beverage
- Pick up a crossword puzzle, and
- Set your alarm to call as soon as their phone lines open at 7 a.m. local time.
This way if you are placed on hold you have something to keep you occupied while you wait for a representative.
Refunds will be slowly processed.
The IRS is severely understaffed and refunds will take more time to be sent and received than in previous years. If you owe taxes do what you can to pay electronically so that your payment is in the system before the system starts sending you dunning letters for lack of payment.
Here’s what I mean: if you’ve sent in your return on time but via USPS then it is a paper return. It will join the millions of other returns that are not yet processed. But, if you owe money, the IRS computer may start sending you notices to pay even though your payment is included in the unprocessed return.
What can you do to overcome these problems? File electronically, pay electronically and hope you don’t need to ask any questions.