What you can doĪnd that brings me to what, if anything, you can do to steer through some of these challenges. But the 2021 backlog is around 5 million letters, which suggests if you need help this year, mail may not be your best bet. In other words, 250 million calls went unanswered.Īnd, as old-fashioned as it sounds, people still seek help from the IRS with snail mail. Last year, the IRS received a record 282 million phone calls, but answered only 11% of them. IRS offices remain open but require appointments, while all Taxpayer Advocate Service offices are closed to in-person visits.īut don’t expect much more luck getting help over the phone. Hello? Anyone there?īut this challenge is compounded by the fact that taxpayers and preparers are finding it nearly impossible to get help from the IRS, whether in person, by telephone or via mail.įace-to-face meetings have naturally become more limited due to COVID-19 precautions. It’s important to note that regardless of whether you receive a notice, you may still be on the hook for interest or penalties if the IRS thinks you owe money. The IRS recently announced that it would suspend some automatic notices until its backlog clears, but others are required to go out within a certain time frame. These IRS communications can leave taxpayers petrified.īecause of the antiquated computer system and dwindling personnel, you might very well receive a notice reprimanding you for a failure that you took care of months ago. For example, if the IRS system shows that a taxpayer owes the government money but doesn’t show payment by a given date, the automated system triggers a notice demanding immediate payment and assessing penalties.

IRS actions are often triggered by automated systems that generate notices and letters to taxpayers.

Erroneous letters and actions from the IRS The same goes for workers who erroneously paid federal taxes on their unemployment insurance and can only be reimbursed at tax time. IRS delays mean businesses must wait longer for forgiveness of pandemic-related loans or credits for keeping their workers on the payroll. Others may use the sudden infusion of cash to make big purchases that they have put off all year, such as dental work or a down payment on a new car. One out of 4 recipients report that they will use their refunds to cover everyday expenses. Often, refunds make a big difference to a household’s finances. Most people are eager to get their money. In 2020, over 75% of taxpayers received a refund, and the average refund for e-filed returns was $2,549. This is a big problem for almost everyone. Even simple individual returns are caught in the backlog.Īs a result, expect a long wait before you receive this year’s refund. Amended 2021 returns are taking more than 20 weeks to process.Īnd it’s not just complicated returns that are getting delayed. Over 15 million returns and 5 million pieces of taxpayer correspondence from 2021 sit untouched – including 6 million original 1040s. The IRS started the 2022 tax season already significantly behind. While the onus for solving these problems should be on the federal government – not the taxpayer – I do have a few suggestions for getting you through tax season 2022. As a tax expert, I believe taxpayers will face at least three main challenges this year.

Irss wheres my refund