2020 and 2021 were some of the most challenging years for the Internal Revenue Services (IRS). The pandemic caused many delays and resulted in a backlog of tax returns. Millions of taxpayers experienced a plethora of uncertainties, especially those who were getting refunds.
Due to the traditional tax-paying method, many paper returns were left unattended for months. IRS notices were delayed until 2020, and the resulting casework was pushed to 2021, causing additional returns backlogs.
In response to the crisis, the IRS extended the federal taxes day from April 15th (to July 15 in 2020 and to May 17th in 2021). The extension benefited American citizens since it helped them overcome the penalties issued due to deferred payment.
The Backlog of Tax Returns
By the end of 2021, IRS had a backlog of eight million returns that had not yet been processed. The year 2022 returns were twice that of 2021, although the tax days were extended similarly to 2021, with days extended up to May 17th. You were allowed to fill out form 4868 if you needed more time to submit your returns.
IRS combined the new returns for 2022 with the remainder from 2021, which meant additional work for the agency. IRS also hired more staff. It made announcements of its intentions to hire around ten thousand workers and put together a surge team to handle the returns.
1500 workers have been on-boarded, and 2000 others have been set apart to tackle the issue. Their primary goal is to complete individual returns with minimal errors for 2021. You should expect your check refund for your returns for 2021 as soon as possible.
2021 Tax Returns Forthcoming
Although there is still more work to do because even the returns with significant errors also require to be quickly processed, the IRS is on the right track. One of the IRS’s most significant challenges during the tax season is inaccurate returns. Accurately filling your returns will help them process your returns faster.
Also, IRS is encouraging you to file your returns electronically. Taxes that are accurately filed electronically will only take 21 days to be refunded. Although millions are still waiting for their taxes to be refunded, the IRS is optimistic that it will wipe out the massive backlog by the end of the year.