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Breaking News: The IRS Warns of a Frustrating Tax Season

Are you surprised?

Remember when 2021 was hailed as the most challenging year in history for both taxpayers and tax professionals? Well, it’s “game on” for the 2022 tax season, which is predicted to give 2021 a run for the money.

A recent article in the New York Post stated that the Internal Revenue Service warned of a “frustrating” 2022 tax filing season in the coming weeks.

Although IRS Commissioner Chuck Rettig stated that “we will do everything possible with the resources available to us,” the IRS faces unprecedented challenges with the ongoing logjams from last year.

Staff shortages, customer service issues, lost refunds, and a significant backlog of 2021 returns are in the forecast for another year of exasperating pandemic-related tax problems.

Last year, the agency sent error notices to over 11 million taxpayers who claimed they did not receive some or all of the stimulus relief issued by the federal government in 2020. A massive backup of paperwork was created as taxpayers challenged the discrepancies. Thus, the IRS has to manage millions of cases that are still unsettled today.

If President Biden’s call for an additional $80 billion in IRS funding goes through, we’ll expect to see new IRS hires, increased audits, and updated technologies. This big spend is justified by the promise of cracking down on tax evaders and increased efficiency. We’ll see how that progresses throughout 2022 and keep you posted.

Mark your calendar for this year’s filing deadline. It’s slightly later this year due to the observation of Emancipation Day in Washington, DC. The agency said it will accept individual tax returns for 2021 on January 24, with a filing deadline of April 18 for most taxpayers.

Ever the optimists, the IRS said it expects most taxpayers to receive their refund within three weeks this year, provided they file electronically and set up direct deposit. There’s nothing wrong with keeping a positive attitude for the 2022 tax season…but I think we all know where it will get us!

As always, call C&B at 201.787.6542 to advise and manage all of your 2022 (or 2021!) tax challenges.

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