IRS Processing Delays Continue
Tips to Avoid a Hold Up

This month the National Taxpayer Advocate provided an annual report to Congress stating that 2021 was “the most challenging year taxpayers and tax professionals have ever experienced” and set the tone that 2022 will continue to be chaotic.

As of December 2021, the IRS has a backlog of 10.3 million unprocessed income, amendment, and employment tax returns and about 5 million unprocessed pieces of correspondence. Some of the submissions date back to April of 2021 and many taxpayers are still awaiting refunds nine months later.  Adding to the processing delays, the IRS customer service representatives only answered 11% of calls in 2021.  The timeline for resolution of these delays is uncertain.

To avoid delays, we recommend the following:

• Electronically file all eligible returns;
• Request direct deposit of all overpayments (refunds) not being applied to subsequent tax years;
• Ensure you have all applicable tax information to file an accurate tax return;
• Get started early; and
• Be prepared to file for an extension if prior year filings or issues remain unresolved.

Sources:

IR-2022-11

IR-2022-18