The IRS reported processing more than 140 million individual income tax returns, including more than 96 million refunds, for a total of more than $282 billion, with an average refund of $3,039, in its final 2022 Filing Season Statistics report.
While this percentage may give the impression that tax season is almost over, there are still a sizable number of manual tax returns that need to be processed, and a sizable number of taxpayers who are still waiting on their refund. Ninety-seven per cent of the total returns received have been processed.
The good news is that you might owe interest on your unprocessed tax return, so don’t panic until you really need your refund.
The majority of people who electronically submitted forms with direct deposit refunds got their money within the typical 21-day processing window. However, millions of people continue to wait months for their refunds after filing.
The IRS is required to pay you interest for every day after your filing that passes if you do not receive your refund within 45 days (if you filed by the IRS tax deadline day on April 18).
According to CNET, you will also be able to get an extra 1% more as of July 1. Due to recent rate increases by the Federal Reserve, the 4 per cent daily compound interest has been raised to 5 per cent. IRS interest rates are calculated by adding 3 percentage points to the Fed’s rate.
Since a source previous report on the subject, the IRS had yet to process 9.8 million individual tax forms. There were 7.4 million paper returns awaiting processing and 2.4 million returns with errors that needed to be corrected. The total also included newly received 2021 refunds.
The majority of people who submitted forms electronically with direct deposit refunds received their money within the typical 21-day processing window.
The Motley Fool estimates that over 14 million taxpayers will get interest payments totalling $18 on average in 2020.
According to the National Taxpayer Advocate Erin M. Collins’ most recent report to Congress, which was covered by CNET, the IRS has a backlog of 8.2 million more tax forms than the previous year and is processing them at a slower rate.
Paper is the IRS’s Kryptonite, and the agency is still buried in it, I noted in my Annual Report to Congress six months ago. To go to this Objectives Report quickly: It’s Groundhog Day,” Collins penned.
As of now, the IRS still hadn’t processed 9.8 million individual tax forms since GOBankingRates’ previous report on the subject. This comprised 7.4 million paper returns that were awaiting processing and 2.4 million returns that needed to have errors fixed. The sum also accounted for newly received 2021 refunds.
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Any potential interest owed will be handled by the IRS, but you can always check the status of your return here or by calling the organisation at 1-800-829-1040.
Remember that if you do get interested in your refund, it’s taxable and you’ll need to file Form 1099-INT on your 2022 tax return (if the interest is greater than $10).
