Staffing concerns at the IRS may cause your tax refund to be delayed this year. Even the United States of America has a role to play in this. According to the Treasury, families seeking child tax credit and newly self-employed Americans are among those who may have the most difficulties this year.
Massive IRS Backlogs Causes the Delay
Scott Adair of the New York State Society of CPAs discussed the potential delay and other facets of the new tax season. According to Adair, the Internal Revenue Service, which handles tax returns, has indicated that there may be refund delays this filing season. However, they are and have been severely understaffed for several years.
They haven’t been able to catch up on their job due to the pandemic. As you may imagine, being out of the office has resulted in a significant backlog of paper returns for the IRS to handle. So they’re encouraging individuals to submit their tax returns online this year.
He strongly advises or even pushes tax filers to do so because it’s the most effective way for them to complete your return and get your refund to you as promptly as possible, rochesterfirst.com posted.
Patience Is Required
According to Fortune, President Joe Biden’s economic strategy, which includes $80 billion for the IRS deadlocked in the Senate, lawmakers seek ways to relieve pressure on the IRS. Senator Ron Wyden, chairman of the Senate Finance Committee, said he’s examining other measures to make the filing season go more smoothly, including extending the deadline. He also said he’s looking into ways to provide the IRS extra money to help support taxpayer services, though it’s uncertain how quickly Congress would approve such a bill.
According to the National Taxpayer Advocate, there are 9.8 million individual returns with mistakes and 2.8 million corporate recoveries in the IRS backlog. According to Barry Melancon, president, and CEO of the American Institute of CPAs, Taxpayers should be patient because the IRS may take several months to handle an amended tax return, which will most likely be manually processed, CNBC wrote.