Ready for your 2021 tax refund? Mark your calendars because January 24 is when the Internal Revenue Service will begin accepting and processing 2021 tax returns.
The 2022 tax season will run from Monday, Jan. 24 through Monday, April 18, the Treasury Department and the Internal Revenue Service said on Monday – but be prepared for potentially slow service as the IRS is underfunded, underfunded. effective and late juggling another filing season, Treasury officials mentioned.
Filing season 2022 comes as Capitol Hill negotiations over the Biden administration’s Build Back Better bill appear to have stalled. The bill would include adding $ 80 billion over a decade to the IRS budget for more staff and better technology to catch tax cheats, as well as funding to improve customer service.
“In many areas, we are unable to deliver the amount of services and applications that our taxpayers and our tax system deserve and need. It’s frustrating for taxpayers, for IRS employees and for me, ”said IRS Commissioner Chuck Rettig.
The Build Back Better bill would also have renewed the enhanced child tax credit payments through 2022. But the future of those monthly payments is in question for 2022, so income tax refunds of 2021 hitting bank accounts could be a much needed cash boost for many parents. The average individual refund on 2020 returns was $ 2,815 in early December, according to the IRS.
Without dealing with delays or errors in a taxpayer’s return, the IRS should be able to meet its traditional turnaround time, which gets refunds to people within 21 days of receiving the return. by the agency, Treasury officials said on Monday.
“Planning the country’s filing season process is a huge undertaking, and the IRS teams have worked tirelessly in recent months to prepare,” Rettig said. “The pandemic continues to create challenges, but the IRS is reminding people that there are important steps that they can take to make sure their tax returns and reimbursements don’t experience processing delays. “
The best way to avoid a delay is to file electronically (instead of via a paper return) with direct deposit, noted IRS officials. It is also crucial that the numbers on the return are accurate to avoid hitches and delays.
The IRS sends out important letters about the amounts it paid to households last year for child tax credit payments and the third round of stimulus checks. It is important to pay attention to these letters, say tax experts.
The IRS is still plagued by a backlog of 2020 tax returns. As of December 23, there were still 6 million unprocessed returns. Errors and the “special treatment” to correct discrepancies in returns are some of the reasons, the IRS said. Typically just before a filing season, the IRS would have a backlog of unaddressed mail and documents of less than $ 1 million, Treasury officials said.
Taxpayers can request an extension of the filing until October 17, with the April 18 due date being the last day to pay federal income taxes for 2021. After this point, the IRS may organize installment plans . Taxpayers in Maine or Massachusetts have until April 19, 2022 to file their returns due to Patriots’ Day in those states.
Last year tax season started on February 12, and the original plan was to have the traditional April 15 deadline. In the middle of the season, the IRS extended the payment deadline to May 17, to account for exhausted taxpayers, tax preparers and the many twists and turns of the new tax provisions of the US 1.9 bailout. trillion dollars.
There are currently no plans to extend the filing deadline this year, Treasury officials said on Monday.