2022 Tax Returns – Why You Should Expect Delays This Year

Tax Returns are Likely to be Delayed in 2022

 

Some people have already received their W-2 or other tax forms from their employers for the 2021 tax year. They may be excited about submitting those forms to the IRS to start the process of receiving their tax refund. However, that excitement should be tamped down, at least to some extent. The Federal Government is already putting out warnings that many tax returns will be delayed this year. 

 

Backlogs on Tax Returns are Roughly Six Times as Long as Normal

 

The IRS is seemingly always at the mercy of some backlogs in its systems. That is part of the nature of processing all tax returns for the entire nation every year. However, they report that the backlogs they are experiencing right now are nearly six times as long as expected. The IRS is still wading through tax returns from the last two tax years before they even have the opportunity to look at what has been going on with this one.

The blog at Concannon Miller explains the scale of the holdup:

Normally at the start of tax season, the IRS has about 1 million items in its backlog but the current backlog totals more than 6 million items, officials said.

The IRS is urging taxpayers to file electronically and request direct deposit – instead of a mailed check – for quicker turnaround.

Those who are able to should file their tax returns electronically. This is the fastest route to receiving a refund no matter what, but it is imperative this year. 

 

Staffing Shortages May Make This a Common Problem

 

Don’t expect much relief from the delays at the IRS. Staffing shortages felt throughout the agency make it possible that delays in receiving refunds may become an issue that taxpayers become accustomed to every year. The IRS is doing all that it can to try to right the ship. But staffing shortages caused by the following issues are not helping:

 

*COVID-19 related illnesses and retirement

*Below average pay for the industry

*A job that is universally reviled by much of the public

 

There will be many challenges ahead and finding enough people to fill this vital job role will be one of them. Taxpayers will have to sit back and be very patient in the meantime. 

For all of the latest on the issues at the IRS and what to expect from processing delays, please contact us.