IRS Problems – Things You Need to be Aware ofFeb 22, 2022
As many are aware, the IRS has been in a constant state of backlog since early 2020. Last year the agency received 119 million phone calls, up from 35 million in a typical year. Ongoing staffing challenges during COVID, the sharp increase in phone calls they have been receiving, alongside the severe lack of modernized technology has all contributed to this problem. In 2021, the IRS was also in charge of sending out the third round of stimulus payments in March and the monthly Child Tax Credit payments that began in July. This only put them further behind.
The IRS currently has more than 6 million original returns that are unprocessed, 2 million unprocessed amended returns, and 5 million pieces of mail from taxpayers. This is causing thousands of phone calls a day to go unanswered and further frustration from taxpayers and tax professionals trying to get their questions answered. They are simply unable to keep up with all of the calls and returns coming in.
To help ease some worries and answer simple questions, the IRS has created a multitude of resources on their website. They are asking taxpayers to make IRS.gov the first step when seeking IRS tax help. They are also suspending the mailing of certain notices in order to provide more help for people during this time. The biggest advice they are giving is to make sure you file your return accurately, as early as you can before the April 18th deadline, file it online (as opposed to paper-filing), and choose direct deposit when getting a refund. This is the quickest way to get it processed and your refund to you swiftly.
We have had first-hand experience with the issues the IRS is facing. It has been incredibly difficult to get through to speak with anyone there – sometimes taking hours a day, multiple days in a row. This only further cements that you need to get accurate information to your accountant/tax professional when completing your taxes. Amending tax return mistakes can be extremely time-consuming and costly for you.