According to the Internal Revenue Service (IRS), there will be major delays in delivering the 2022 tax refunds. Taxpayers are recommended to file their tax returns as early as January 24. If they get lucky enough, the refund might come out within 21 days.
The 2022 tax season is starting with some bad news. According to the IRS, it might be a "frustrating" experience for taxpayers and tax preparers. This is because of pandemic-related delays and unprocessed returns from 2021.
IRS Tax Refund Delays
Deseret News emphasized in a report that IRS is suffering from staff shortage because they lost 25 percent of their personnel count. Also, be warned that IRS recorded over 25 million individual and business tax returns that have not been processed for 2021.
John Koskinen told The Washington Post that "by definition, no matter how much more efficient you are, you can't lose 25 percent of the workforce and assume you can do the same volume of work. It's a problem across the board - information technology; revenue agents; people answering the phones."
The IRS officially acknowledged this issue in a public statement. Fortunately, they also proposed a few changes that could improve the situation.
Tax Refund Schedule: 2022 Tax Filing Season
The IRS announced that taxpayers could begin filing their 2021 tax returns by January 24, which is significantly earlier than last year's February 12 schedule. IRS officials said submitting the information early can help ensure that their systems run smoothly during processing.
The agency said that if taxpayers file electronically, choose direct deposit and show no issues with their returns, then the refund could be processed within 21 days!
Note, however, that by law, the IRS cannot issue refunds involving Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. This is to prevent fraudulent refunds from being issued. So, taxpayers can look forward to March as the earliest pay date.
5 Steps to Get Refund Early: Tax Refund Calculator
Aside from submitting tax filing early, Investopedia listed five suggestions that can help speed up IRS processing. These tips will also ensure that a taxpayer submits all the requirements for tax filing.
- Gather the 2021 Tax Record: Taxpayers have to take note of the necessary information like Individual Taxpayer Identification Number, Adoption Taxpayer Identification Number, and Identity Protection Personal Identification Number.
- Check IRS.gov for the latest information: Aside from tax updates, this website will include information on tax refunds and stimulus payments. Taxpayers interested in any of these topics are recommended to bookmark the page.
- Report the correct information and amount: Taxpayers are advised to be honest in reporting any Economic Impact Payments, Child Tax Credit, or financial assistance received in 2021. Inconsistencies or errors in the information is one of the biggest reasons for processing delays.
- Use the IRS Free File program: This is a handy tool for taxpayers who earn $73,000 or less to quickly and effectively submit their 2021 tax returns.
- File electronically and request for direct deposit: This payout method is the fastest way to ensure that taxpayers receive their money in real-time.