uTax is sharing the latest news release issued today by the IRS in response to the release of the mandated mid-year National Taxpayer Service (TAS) Advocate Report to Congress. In addition to a review of the 2022 tax season and the concern about continuing IRS delays in the processing of paper-filed tax returns and the impact on taxpayer refunds, this comprehensive TAS report contains other relevant topics, key objectives and recommendations for the upcoming fiscal year.
- According to the Taxpayer Advocate, (and shared in our June 21 partner communication IRS Update on Tax Return Processing Backlog), “it is anticipated that the IRS will be caught up with the 2021 paper tax filings by the end of June 2022, at which point it will begin processing the paper returns filed beginning January 24, 2022“.
You can access this entire TAS Report to Congress using the link provided within the IRS News Release below.
Your uTax Team
IRS News Release IR-2022-129 – June 22, 2022 (Check back at IRS.gov for posting in Español)
National Taxpayer Advocate Issues Mid-year Report to Congress; Expresses Concern About Continued Refund delays and Poor Taxpayer Service
(Excerpt) WASHINGTON — National Taxpayer Advocate Erin M. Collins today released her statutorily mandated midyear report to Congress. The report expresses concern about continuing delays in the processing of paper-filed tax returns and the consequent impact on taxpayer refunds. At the end of May, the agency had a backlog of 21.3 million unprocessed paper tax returns, an increase of 1.3 million over the same time last year.
“The IRS has said it is aiming to crush the backlogged inventory this year, and I hope it succeeds,” Collins wrote. “Unfortunately, at this point the backlog is still crushing the IRS, its employees, and most importantly, taxpayers. As such, the agency is continuing to explore additional processing strategies.”
The report points out that the significant majority of individual taxpayers receive refunds. “At the end of the day, a typical taxpayer cares most about receiving his or her refund timely,” Collins wrote. “Particularly for lower income taxpayers who receive Earned Income Tax Credit benefits, tax refunds may constitute a significant percentage of their household income for the year. Thus, these processing delays are creating unprecedented financial difficulties for millions of taxpayers and outright hardships for many.”
Among business taxpayers, many have been waiting extended periods to receive Employee Tax Retention Credits for which they are eligible, in addition to their regular refunds.
Key taxpayer challenges this year have included return processing delays, correspondence processing delays, and difficulty reaching the IRS by phone.
Click on the IRS News Release IR-2022-129 link above to read this news release in its entirety, covering additional information and/or responses on the following topics:
- Backlog of Unprocessed Paper Tax Returns
- Correspondence Processing Delays
- Telephone Challenges
- Taxpayer Advocate Service (TAS) Objectives for FY 2023
- Automating the processing of paper tax returns
- Reducing barriers to e-filing tax returns.
- Improving the IRS’s hiring and training processes
- Improving telephone service
- IRS Responses to National Taxpayer Advocate Administrative Recommendations
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. We’re here to ensure that every taxpayer is treated fairly and that you know and understand your rights. Our advocates can help if you have tax problems that you can’t resolve on your own. Learn more about TAS here.