Many American taxpayers are still waiting for their returns, with the IRS stating that processing delays are due to worker shortages, budget cuts and other outstanding factors.
The COVID-19 pandemic has continued to have an impact on the speed that tax refunds are processed, and that’s been exacerbated by several tax changes this year caused by federal relief measures, IRS commissioner Chuck Rettig said on April 7, 2022.
“The IRS is serving more people and entities in a global environment than ever before while handling new and bigger responsibilities,” said Rettig. “At the same time, we have experienced delays in updating our IT systems, which means the IRS and taxpayers must continue to use certain paper-based processes.”
With the uncertainty of processing times and fear of misfiling returns, Essam Abdullah, founder and CEO of TaxRise Inc., says that more Americans are seeking out the aid of tax experts.
“The tax situation in America is unprecedented. We haven’t seen delays and backlogs of this scale before,” said Abdullah. “People are concerned about what will happen if they make a simple mistake on their tax return.” He adds, “With processing delays, there’s no knowing how long it could take for someone to realize something went wrong. So, more Americans are seeking professional help.”
Now more than ever, the IRS encourages taxpayers to file online and make sure that they file their taxes correctly. Making a mistake on your return and failing to correct it could result in taxpayers being charged penalties and interest.
This means they need to file an amended return, or have a professional prepare it for them. This can further cause delays on a tax return.
In an interview with WBTV News, Monique McGrant of McGrant Tax and Bookkeeping Accounting Firm urged taxpayers to file diligently to avoid processing delays.
“Make sure you have all of your pertinent income documents, your W2s, 1099s — all of the forms that you need to file your taxes so that it can be complete and you can have a refund delivered to you in the 21 day time frame that they allot,” said McGrant. “The backlog with the IRS is very big and lengthy. Right now, they do say you can expect a refund in 21 days as long as you have everything in order for 2021. The backlog for 2020 will take some time, there is no time frame for it, but hopefully within the next 6-12 months they can get it cleared out.”
The IRS is still processing millions of tax returns as the 2021 filing deadline approaches. Just last month, the IRS announced its plan to hire 10,000 workers to take on the massive backlog.
“IRS employeeshave been working tirelessly to process backlogged returns and taxpayer correspondence. To ensure inventory is back to a healthy level for next filing season, we are leaving no stone unturned – taking an all-hands-on-deck approach to ensure as many employees as possible are dedicating time to return processing,” Rettig said in a statement. “This includes bringing on new employees and reassigning current IRS employees to process inventory.”
Recently, the IRS stated that they are prioritizing returns with refunds over those who owe money. However, for those who do owe, Abdullah says he and his team will be there to help. To date, TaxRise has successfully saved taxpayers millions in tax debt, finding relief for many who were faced with dire situations. In a case study recorded on the TaxRise website, one woman battling breast cancer, identified only as “Cate”, owed the IRS more than $42,000. After unsuccessfully offering the IRS an offer in compromise (OIC), she sought out TaxRise for help.
TaxRise was able to settle her debt for only 1% of the initial cost, meaning Cate only paid $500 of the original debt, a 99% savings overall.
“This is the reason I’m in this business, to help our clients find that relief,” Abdullah said. “The IRS can be very aggressive and I understand how stressful and scary it can be, but the team here at TaxRise is prepared to fight for our clients.”
In the meantime, taxpayers are encouraged to file as soon as possible. Provided there are no unforeseen issues, those who file electronically with direct deposit can expect to receive money within 21 days of the refund being filed. If you are concerned about owing the IRS this tax season, there are professional options available.
“People don’t have to face this rocky tax season alone,” he said. “The professionals are here for a reason.”
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