IRS issued a warning for Americans to start filing their taxes immediately. Tax season might be quite complicated for everyone.
Americans to File Taxes Immediately say IRS
Filing taxes electronically is the quickest way to receive the refund promptly, according to IRS in a published report on The US Sun. January 24 is the kicked-off season in tax filing and IRS said that there might be a potentially difficult tax season that will likely bring complications and could lead to delays for many taxpayers.
Furthermore, the agency is dealing with a worker shortage while at the same time making sure all stimulus checks and other pandemic-related measures were sent out correctly and it is currently dealing with a massive backlog of unprocessed returns. According to the Congressional Budget Office, the agency is currently dealing with a major staff shortage with about 20,000 fewer employees than it had in 2010, due to the ongoing pandemic, the employees were unable to work. The agency’s budget has also been reduced about 20 percent less than it was in 2010 when adjusted for inflation.
In a recent report to Congress, National Taxpayer Advocate Erin Collins estimated that the IRS had a backlog of more than an 8.6million unprocessed individual tax returns and 2.8million business returns as of mid-December. Usually, in an average year, the IRS enters tax filing season with less than 1million items to cater.
Here’s How to Faster your Refunds
Several American taxpayers are also looking at more complicated returns this year as many will have to input their monthly child tax credit payments and stimulus checks they received in 2021 into their returns.