IRS Encouraging Taxpayers to File Tax Returns Sooner Rather Than Later

Now that tax season is here, the Internal Revenue Services is encouraging people to file their returns as early as possible if they don’t want to wait forever for their money. In addition, the agency urges electronic filing over paper.

The IRS said that if you file electronically with a direct deposit for the refund, it should process within 21 days. Experts also want taxpayers to know that they do not have to have the previous year’s return to file. 

The tax-collecting agency is anticipating delays this year due to a staffing shortage, pandemic-related complications, and a backlog of unprocessed claims.

The IRS is currently operating with 20,000 fewer staff members than it had a decade ago. Not to mention that 20 percent of the agency’s staff have been out due to COVID-related health issues since 2020.

In addition to staffing shortages, the IRS is facing a massive backlog. By the time the tax-filing season rolls around, the agency usually has less than 1 million items to review. According to a recent report, the IRS has more than eight million individual income tax returns, more than two million business returns, and about five million pieces of unanswered mail. 

“The IRS right now has unacceptable backlogs, and the customer service that people are receiving is not what the American public deserves,” said White House press secretary Jen Psaki last week. “The agency has not been equipped with the resources to adequately serve taxpayers in normal times, let alone during a pandemic.”

Returns will be further complicated by some of the pandemic-related changes, and mistakes are expected. For example, taxpayers must include the monthly tax credit and stimulus check payments. 

This year the tax-filing season ends on April 15 instead of the usual April 15 since that is when Emancipation Day is observed in Washington D.C., according to Fox Business. If an extension is needed, fill out Form 4868 on the IRS website and return it by the deadline.