As It Prepares for a Busy Tax Season, the IRS Warns About Delayed Refunds
Tax season is stressful enough as it is, but the IRS is warning that it may be even more so this year. Backlogged cases from the previous year are causing havoc this tax season.
There Are More Than 35 Million Unprocessed Returns
According to the Washington Post, the IRS has over 35 million backlogged cases this year, compared to over one million every year when the new tax year begins. Due to budget cuts and office closures as a result of the Covid epidemic, the tax authority is in a less-than-ideal situation.
Betterment Is Delayed in the Senate
Commissioner Chuk Rettig of the Internal Revenue Service has admitted that the IRS is unable to provide the kind of service that America requires and deserves. The Biden administration has requested increased monies for the IRS in its Build Back Better Act to expand its working capacity, but the bill is currently blocked in the Senate with little optimism.
Online Filing Is More Efficient
The processing of digitally filed tax paperwork necessitates the least amount of interaction from tax officials. Because the number of IRS staff processing returns is expected to be lower this year than in previous years, it is recommended that you file your forms online to receive faster results. Do not wait until the end of the year to file your taxes. To be cautious and avoid penalties, the IRS recommends that you begin filing your taxes as early as January 24. However, if you have not yet received the IRS letter for stimulus money, it is preferable to wait and deal with any delays that may occur.
Use the IRS Free File Program to File Your Taxes for Free
Low-income people can submit their taxes for free through the IRS’s Free File Program, which began in 2003. The annual income ceiling adjusts for inflation, yet it remains high enough to target 70% of the American population.
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Certain tax software products give free tax preparation for people if their income is higher than what is eligible for free tax preparation on the IRS tool. The only problem is that some of this software only offers federal tax preparation and charge extra for state taxes.
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