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Angered by IRS tax delays as watchdog warns agency is in ‘crisis’ WEEK before 2022 filing season

FURY was dropped because of the IRS tax delay when a watchdog warned that the agency was in a state of “crisis” just weeks before the 2022 filing season.

National taxpayer advocate Erin M. Collins released an annual report to Congress on Wednesday, identifying the most serious problem facing US taxpayers.

National taxpayer advocate Erin M. Collins released an annual report to Congress on Wednesday identifying the most serious problem facing US taxpayers

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National taxpayer advocate Erin M. Collins released an annual report to Congress on Wednesday identifying the most serious problem facing US taxpayers

Follow annual report, the key issue was the massive delay in processing tax returns and refunds.

In its report, the taxpayer advocate asserts that “there is no way to pass 2021 in tax administration.”

“There should be no taxpayer problem in 2021,” she added.

“While my reporting focuses primarily on the issues of 2021, I care deeply about the upcoming application season,” says Collins.

“The paper is the IRS’s Kryptonite, and the agency is still buried in it.”

The report comes as another round of individual tax returns will begin to be accepted by the IRS on January 24.

Collins has revealed that millions of documents have been backlogged.

Since the end of December, Collins said the IRS “backlog of 6 million original unprocessed personal returns (Form 1040), 2.3 million pending revised personal returns (Form 1040-X), more than 2 million quarterly user tax returns pending employment (Forms 941 and 941-X) and approximately 5 million taxpayer correspondence – with some of these submissions dating back to at least April and many taxpayers still working. waiting for their refund nine months later.”

Read ours Child tax credit live blog for the latest news and updates…

In the section on Collins’ processing delays, she explained, “The IRS is in crisis and needs to devote resources to its core mission – processing these returns and paying them back.” respective refunds.

“Some of these refunds contain COVID-19-related relief that Congress has provided
taxpayers more than a year ago but they are still waiting.

“For other taxpayers, their reimbursement can provide significant funds for basic living expenses or for paying employees.

“And for many taxpayers, their untouched tax returns are affecting their ability to get a mortgage, refinance their home, or get student loans. “

Some of the delays are due to poor phone service, backlog processing, and “Where’s my Refund Tool?” The report notes that specific questions cannot be answered.

The report also states that the IRS “deserves credit for playing the hand it was dealt.”

Additionally, Collins said millions of taxpayers will need to claim their Advance Child Tax Credit (AdvCTC) payments.

“Eligible taxpayers who do not receive some or all of the third-round stimulus payments, as permitted by the American Rescue Plan Act, will have to claim them as,” she explained. credit on their profits.

“As a result, the unprecedented processing and refund delays experienced by taxpayers in 2021 could be worse and potentially worse in 2022 if taxpayers fail to file their electronic filings.” death or fail to properly reconcile their monthly AdvCTC payments or third stimulus payments with their 2021 repayments.”

Some taxpayers took to social media to voice their concerns and anger about the persisting delay.

Person tweeted This week: “The IRS talks about tax deferrals this year.

“They’d better withdraw my money the same way they take my checks every week.”

IRS Commissioner Chuck Rettig said in a statement earlier this week ABC News: “In many areas, we are unable to provide the amount of service and enforcement that our taxpayers and tax system deserve and need.

“This is frustrating for taxpayers, for IRS employees, and for me.

“IRS employees want to do more and we will continue into 2022 to do everything we can with the resources available to us. And we will continue to find ways to improve.

“We want to provide as much as we can while protecting the health and safety of our employees and taxpayers. Additional resources are essential to help our employees do more. more jobs in 2022 – and beyond.”

And Jeff Badu, CPA at Badu Tax Services, told CNN he anticipates this tax season to be “extremely busy.”

“You know, not just for the tax preparers, but for the taxpayers as well,” he added.

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https://www.the-sun.com/money/4459830/fury-irs-tax-delays-crisis-2022-filing-season/ Angered by IRS tax delays as watchdog warns agency is in ‘crisis’ WEEK before 2022 filing season

DevanCole

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