(The Center Square) – Americans around the country will begin filing their income taxes as the filing period opened this week, but many could experience major delays from the Internal Revenue Service, which still has millions of unprocessed returns from last year.
The IRS warned Americans this week with an “urgent reminder” to file electronically “to help speed refunds.” The IRS cited “several critical tax law changes that took place in 2021 and ongoing challenges related to the pandemic” for the delays. Americans hoping to receive tax refunds also could see delays, especially if they do not file electronically.
“None of this is new, with the IRS admitting last year that returns which previously took three weeks to process were taking up to four months,” tax expert at the American Enterprise Institute Matt Weidinger wrote. “….Record child tax credit payments are pending in the coming tax season, payable to a record number of recipients, even without the passage of further legislation.”
Some have argued the IRS needs more funding to handle the returns, but others point out that the shift toward e-filing should have more than lifted the load for the federal tax-collecting agency.
“In the 1980s, the IRS was processing paper returns, today 81% of returns are e-filed. With the technology and tools available today, the IRS should be far more efficient,” Heritage Foundation economic and tax experts Rachel Greszler and Preston Brashers said in a joint statement.
The National Taxpayer Advocate released its federally commissioned report in mid-December, which said the IRS had 6.2 million unprocessed individual returns, 2.8 million unprocessed business returns, 2.4 million unprocessed amended individual returns, as well as 427,000 amended business returns. For those corresponding with the IRS, their messages are waiting processing along with 4.75 million pieces of correspondence from taxpayers around the country.
“The IRS is in crisis and needs to apply resources to its core mission – processing returns and paying the corresponding refunds,” the group said.
Another factor for the backlogs is that Congress expanded the IRS’ power and responsibilities significantly in recent months. That expansion included a monthly child tax credit program that handed out funds to millions of American families based on income and the number of children they have.
Another factor for the backlogs is that Congress expanded the IRS’ power and responsibilities significantly in recent months. That expansion included a monthly child tax credit program that handed out funds to millions of American families based on income and the number of children they have.
