The Internal Revenue Service (IRS) issues a tax refund to approximately 75 per cent of all taxpayers in the United States on an annual basis, and as the tax filing season for the year 2022 has just begun, several households are getting ready to receive a payment.
However, during the period when returns were being processed in 2021, there was a significant delay, and approximately 30 million taxpayers had their returns and refunds held up by the IRS.
Already on Monday, the United States Department of the Treasury issued a warning that the Internal Revenue Service (IRS) will face difficulties during the upcoming tax season because the agency only recently began processing tax returns (on January 24).
According to the Treasury Department, as of the 31st of December, there were still six million individual tax returns that had not been processed.
Although this represents a significant decrease from May’s backlog of 30 million cases, it is still significantly higher than the typical number of backlog cases at this point in the season, which is typically somewhere around one million.
What is the reason for this?
This is because the Internal Revenue Service (IRS) still has a significant backlog of returns from the year 2021.
The Treasury Department reported that as of the 31st of December, there were still six million individual tax returns that had not been processed.
This is a significant improvement from the backlog that was reported to be 30 million in May, but it is still significantly higher than the typical number of backlog cases at this stage of the season, which is typically around one million.
When it comes to getting a refund in the year 2022, how long will the process take?
The aforementioned backlog will make it difficult for the IRS to be efficient with their work on tax refunds for 2022; however, the treasury is still confident that the majority of Americans should get their refunds within 21 days of filing, although there are some exceptions to this rule.
Those who file claims for the Earned Income Tax Credit or the Child Tax Credit will be required to wait for a longer period as a result of regulations that have been put in place to reduce the likelihood of fraud occurring.
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According to the Internal Revenue Service (IRS), those taxpayers who claimed the credits mentioned above and submitted their returns on January 24 may not receive their refund until the beginning of March at the earliest.
Other problems, such as mathematical errors or incorrectly stated income, can also cause a delay in the processing of your refund case.
If this is the circumstance surrounding your tax return, then there is a possibility that it will be flagged, which will invariably result in a delay of several weeks or months.
