Possible IRS Issues Taxpayers Might Face When Filing Taxes This Year

Taxpayers face hurdles this filing season as a result of a job shortage, a large burden from pandemic-related programs, and delayed legislation that would have given billions for the IRS to process returns more effectively.

IRS Backlogs

White House press secretary Jen Psaki said that the Internal Revenue Service is currently experiencing intolerable backlogs, and the customer service that individuals are receiving is not up to the standards that the American public expects.

She also added that even in normal times, the agency lacks the resources necessary to provide adequate service to taxpayers, let alone in the event of a pandemic outbreak.

According to Denver Post, she emphasized that the problems predate the Biden administration and pleaded for patience on behalf of the weary workers who are already dealing with massive backlogs. Psaki stated that it will take some effort and time, and she believes that people must realize that they require financial assistance to accomplish their goals.

The report also stated that IRS officials have already issued a warning to filers, stating that the agency is unable to provide the level of service and enforcement that their taxpayers and tax system deserve and require, as IRS Commissioner Chuck Rettig stated earlier this month in a speech.

Tax returns for the year 2020 are currently being processed, so delays in processing are to be expected.

Millions of Unprocessed IRS Returns

As reported by the USA Today, each year, the Taxpayer Advocate Service, an independent resource for taxpayers inside the Internal Revenue Service, is required by the law to submit a report to Congress detailing the ten most critical difficulties facing taxpayers. Those complaints varied from delayed processing to the ways in which collection regulations affected lower-income filers during the previous tax season.

In the next few months, as the taxpayers prepare for tax season, the third round of pandemic payments, along with advance child tax credits, which began being credited to families at the end of 2021, could create another backlog that could delay tax refunds, the report said.

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