Willie R. Tubbs, FISM News
The Internal Revenue Service announced Monday that, thanks to staffing issues caused by COVID-19 and budget cuts, tax season 2022 might last even longer than expected.
According to a report by CBS News, the IRS is still trying to dig itself out of a work backlog that began in 2020, meaning that delays on tax refunds can be expected.
“In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs,” IRS Commissioner Chuck Rettig told CBS. “This is frustrating for taxpayers, for IRS employees and for me. IRS employees want to do more, and we will continue in 2022 to do everything possible with the resources available to us.”
Last week, the IRS released its annual progress report. In this 56-page document, it was revealed that IRS employees have made headway despite having faced office closures, a workforce reduction of about 20%, stimulus payouts, Child Tax Credit payouts, and a budget that has been reduced by about 20% over the past decade.
Combine these issues with a U.S. population that has grown by 60% since 1970, and continues to grow, and there is little doubt as to why the agency has fallen behind.
“This has been an unprecedented period facing the IRS and the nation,” Chuck Rettig said in a release. “IRS employees worked hard during the pandemic, repeatedly delivering for taxpayers under tight timeframes and difficult circumstances.”
He added, “As the 2022 filing season approaches, more work remains for us to help taxpayers as well as tax professionals. We will continue to make progress on critical areas thanks to the hard work of so many people. I’m incredibly proud of what our employees have been able to accomplish during this period, and we also appreciate the efforts taking place by our partners inside and outside the tax system to help people struggling during COVID-19.”
Tax season 2022 officially begins on Jan. 24, the first day Americans can file a tax return.
In a Monday press release, the IRS encouraged tax payers to file complete, accurate returns as early as possible. Additionally, the agency recommended filing electronically and using direct deposit to receive refunds.
Rettig warned that attempting to contact the IRS by phone to address issues would likely prove vexing.
“Our phone volumes continue to remain at record-setting levels,” Rettig said. “We urge people to check IRS.gov and establish an online account to help them access information more quickly. We have invested in developing new online capacities to make this a quick and easy way for taxpayers to get the information they need.”
While electronic filing and direct deposit are the most efficient means of completing tax returns, these methods can carry additional costs.
Direct deposit is cheaper for the government – about 10 cents per electronic transaction compared to $1 for a paper check, according to the IRS – but many third-party banks charge fees to process returns when taxpayers use online filing services.
Similarly, third-party tax filing services charge fees for more complex returns. These fees vary greatly based on specific service requested and among providers.