There’s a reason that this year, so many individuals were urged to file their tax forms electronically. The IRS has been holding onto a sizable backlog of unprocessed returns for several months. The agency still has a lot of work to do even if it is finally making headway.
11 Million Unfiled Returns
The good news comes first. More than 143 million tax returns from 2022 have been processed by the IRS, and approximately 98 million refunds totaling $298 billion have already been distributed. But even after the 2022 filing season, the IRS is still dealing with a large backlog.
The IRS decided to close its field offices during the epidemic out of concern for employee safety. However, this caused it to fall behind in processing paper returns. As a result, the IRS still had around 11 million unprocessed returns to review as of June 10; they include older returns as well as those received after 2022.
Employing More People
The IRS was already experiencing personnel issues that made keeping up with paper returns challenging before pandemic-related closures forced the agency into a catch-up mode. The IRS is now attempting to increase recruiting in an effort to deal with the current issue.
In fact, according to IRS Commissioner Chuck Rettig, the organization should be able to clear its backlog by the end of the year, barring any more difficulties. Therefore, the IRS should be able to begin the 2023 filing season with what it refers to as a “regular inventory of returns.”
However, the IRS has historically been underfunded, which has contributed to circumstances like the one it is currently facing. Although the IRS does have employment intentions, they have taken a while to materialize.
How to Prevent Delays in Refunds
You might have to wait longer for your refund to arrive in your bank account if your paper tax return processing is delayed. Since your 2022 tax return will be due in 2023, you might want to approach it differently if you regularly file your taxes on paper.
The thought of moving to electronic filing might be intimidating if you’re used to completing your taxes on paper. However, the process of completing a return is actually pretty simple thanks to modern tax filing software.
Not only that, but you could be less likely to make a mistake that delays your return and refund if you submit your taxes electronically as opposed to on paper. Additionally, filing online may enable you to get all of the tax breaks and credits to which you are eligible.
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While it is evident that the IRS is making an effort to process a backlog of older returns, it is possible that lengthy delays might have a negative impact on taxpayers who are waiting for refunds, especially in the current climate when inflation has driven up living expenses to unaffordable levels. Although it is encouraging that the IRS has made some headway toward clearing its backlog, there is still more that needs to be done.
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