Be prepared for another turbulent tax season for those who are genuinely in trouble.
The IRS expects to have difficulty processing some returns, getting out refunds, and answering taxpayers’ calls for the third year.
Treasury Department officials say that the IRS will face enormous challenges because of the pandemic and years’ worth of underfunding in managing people’s expectations. If you are expecting a refund, here are some answers ahead of the start of the 2022 Tax Season.
You won’t receive a refund if you file early until February.
The IRS is prohibited from issuing a refund regarding the Earned Income Tax Credit or Additional Child Tax Credit until mid-February. Returns can be filed starting January 24.
The law allows for additional time to prevent fraudulent refunds from issuing the IRS.
Monday’s statement was made by Chuck Rettig of the IRS, who stated that the current pandemic would continue to cause problems. He said, however, that taxpayers could take steps to help their returns run more smoothly.
Rettig stated, “Filing electronically through direct deposit and avoiding the paper tax return are more important than ever this past year.”
Taxpayers can also avoid delay in getting their tax refunds if they don’t act quickly if given stimulus money or advance payments for the Child Tax Credit in 2022.
What happens if you cannot file your income tax returns by April 15?
Taxpayers with a limited amount of paperwork can file an extension, Form 4868, Application to Automatically Extend the Time to File U.S. Taxes. Individual Income Tax Return – The taxpayer will have until October 15 to file the tax return. It is not necessary to give any reason for this extension. As the title says, it is automatic.
A person who owes tax is responsible for paying it by April 15, regardless of whether they have filed an extension. A professional can assist you with this. For those entitled to a refund, the extension request should be submitted by April 15. This can be done by both a tax professional and many tax programs you can do yourself.
Individuals who usually don’t file returns should file
IRS confirmed that tax returns would be required for some individuals, even though they aren’t required to do so because of low income. They would have to file to claim a Recovery Rebate Credit to receive tax credits from the 2022 stimulation payments.
Barry Melancon was the CEO and president of the American Institute of CPAs. Melancon stated that the Treasury Department had acknowledged some challenges ahead, but officials did not offer any plans to alleviate them.
Melancon said that the AICPA has been open about suggesting ways to alleviate processing woes and taxpayer headaches.
Melancon stated, “For more 18 months, AICPA repeatedly and publicly recommended that the IRS take reasonable measures that would meaningfully decrease persistent, unnecessary or erroneous notification and help American taxpayers.”
For more information and assistance, visit the following websites.
https://www.washingtonpost.com/business/2022/01/11/irs-tax-refund-questions/
https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline
https://www.cpapracticeadvisor.com/tax-compliance/news/21250061/when-to-expect-your-2022-irs-income-tax-refund
https://www.journalofaccountancy.com/news/2022/jan/irs-accept-2021-tax-returns-starting-jan-24.html
https://www.freep.com/story/money/personal-finance/susan-tompor/2022/01/10/irs-2021-tax-returns/6510096001/
https://www.cbsnews.com/news/tax-refund-2022-irs-returns-january-24/
https://www.marketwatch.com/story/this-years-income-tax-filing-season-starts-jan-24-and-the-irs-says-its-going-to-be-a-frustrating-one-11641835408
https://smartasset.com/taxes/tax-refund-delay
https://www.cnbc.com/2022/01/12/the-irs-is-in-crisis-taxpayer-advocate-warns-of-2022-refund-delays.html
https://www.usatoday.com/story/money/taxes/2022/01/10/irs-allowing-you-to-file-taxes-starting-jan-24/9163934002/