TAX REFUNDS DELAYS EXPECTED

January 18, 2022 - Douglas Myser

Tax refund delays expected. Due to the additional work that Congress has put on the IRS, the stimulus administration, keeping track of those payments, and overhauling the IRS computer system, the IRS during the Covid pandemic has fallen behind in processing tax refunds and tax returns. They had the same problem last year, and it took nearly six months to get the backlog of mail cleared up. Treasury officials have reported that this year will be a "frustrating season" for taxpayers and tax preparers as a result of delays caused by the pandemic, and years of budget cuts, that are only now being addressed by the Biden Administration. The federal stimulus measures that were added to the duties of the IRS, only made the situation worse. Tax refund delays expected.

The IRS faces 35 million unprocessed tax returns as the backlog has swollen. Typically the IRS enters the filing season with a backlog of roughly 1 million returns. The IRS closed last filing season with more than 35 million unprocessed returns-a fourfold increase from the last year before the pandemic. As the backlog increased, the IRS also failed to respond to the enormous increase in calls for assistance. Only 9 percent of calls were actually answered by the IRS customer service representatives. Only 3 percent were answered for the 1040 support line for individual income tax returns, according to the National Taxpayers Advocate's Office.

The pandemic forced the closure of many in person centers where paper forms are processed, while also affecting the IRS workforce. But even before the pandemic, the IRS had been scaled down by budget cuts. President Biden is addressing those concerns with large funding measures to shore up the agency. The challenges the IRS was facing was exacerbated by the Covid pandemic, which only increased the amount of work assigned to the agency. With the public out cry over bad customer service, and never getting through to anyone. A Tax Resolution Company can cut through all of the IRS red tape. Congress has finally taken note. Tax Resolution Services made easy. Call today for a consultation 1-888-689-7861