Tax filing season starts soon — and could be plagued by delays. How to avoid them
The 2022 income tax filing season starts soon — and it could be a frustrating one as the Internal Revenue Service says it continues to grapple with pandemic-related delays and other complications.
Some are still waiting for their returns from last year. But the agency said there are ways taxpayers can make sure they receive their refunds as soon as possible.
Here’s what to know about the upcoming tax season and how to avoid delays.
When does tax season start?
Tax season will start Monday, Jan. 24.
That’s when the IRS will start accepting and processing income tax returns for 2021. But IRS Free File — which “allows taxpayers who made $73,000 or less in 2021 to file their taxes electronically for free” will open Friday, Jan. 14.
This tax season comes nearly three weeks earlier than last year’s delayed start of Feb. 12.
“The Jan. 24 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly,” the agency said.
The deadline for most Americans to file their 2021 tax returns or to request an extension is April 18. But residents of Massachusetts and Maine have until April 19 because of the Patriots’ Day holiday.
The deadline for those who request an extension is Oct. 17.
Potential delays
The IRS says it’s continuing to experience delays in some areas due to the COVID-19 pandemic, including in processing and reviewing tax returns, “live phone support” and answering taxpayers’ mail.
As of Dec. 23, the IRS said it had a backlog of 6 million unprocessed tax returns, including 2020 returns with errors and returns that require “special handling.” All error-free returns received before April 2021 have been processed.
Taxpayers still waiting for their 2020 returns to be processed generally do not need to wait to file their 2021 returns.
The IRS would normally have fewer than 1 million items in its backlog heading into the new tax season, CBS News reported. But in addition to pandemic-related disruptions, the IRS has been operating with a smaller staff and a smaller budget than usual.
“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop these past several months to prepare,” IRS Commissioner Chuck Rettig said in a statement. “The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays.”
How to avoid delays
The IRS urges people to file their tax returns electronically, including with direct deposit information, as soon as “they have everything they need to file an accurate return” to get their refunds as soon as possible. Filing paper returns should be avoided “wherever possible.”
“Most individual taxpayers file IRS Form 1040 or Form 1040-SR once they receive Forms W-2 and other earnings information from their employers, issuers like state agencies and payers,” the IRS said.
The IRS also said it’s especially important this year for taxpayers to make sure they have all the information they need to file a “complete and accurate” return, which helps avoid delays and “later IRS notices.”
“This is especially important for people who received advance Child Tax Credit payments or Economic Impact Payments (American Rescue Plan stimulus payments) in 2021; they will need the amounts of these payments when preparing their tax return,” the agency said. “The IRS is mailing special letters to recipients, and they can also check amounts received on IRS.gov.”
The agency recommends organizing all tax records, including Social Security numbers, Individual Taxpayer Identification Numbers, Adoption Taxpayer Identification Numbers and current Identity Protection Personal Identification Numbers, ahead of time.
The IRS estimates that most taxpayers should receive their refunds within 21 days of filing if they do so electronically, choose direct deposit and make sure there are no issues on their returns. But returns with potential errors or missing information must be handled by an IRS employee, meaning refunds may take longer.
Help with filing taxes
The IRS is also urging people to use its online resources during tax filing season instead of calling for help.
During last tax filing season, the agency said it received more than 145 million calls, which is more than four times as many as during an average year.
“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.”
Some taxpayers can get free assistance “at Volunteer Income Tax Assistance and Tax Counseling for the Elderly locations across the country” or use the Free File program, the IRS said. More resources can be found on its website.
“In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs. This is frustrating for taxpayers, for IRS employees and for me,” Rettig said. “IRS employees want to do more, and we will continue in 2022 to do everything possible with the resources available to us. And we will continue to look for ways to improve.”
This story was originally published January 11, 2022 at 9:31 AM with the headline "Tax filing season starts soon — and could be plagued by delays. How to avoid them."
