Ahead of Tax Season, IRS Faces Backlog of Returns

(KNSI) – The Internal Revenue Service began accepting 2021 income tax returns Monday, but Erin Collins, the National Taxpayer Advocate, reported to Congress that the IRS has a backlog of more than 35 million returns.

In addition, taxpayers calling the IRS have a one in nine chance of getting their call answered, with an average on-hold time of 23 minutes.

Ashley Kerzman, business manager for Landwehr Tax and Accounting, says despite the bad news, most taxpayers won’t notice a difference.

“For the average consumer, it’s going to be a normal filing season. They’re not gonna see much of a difference. They may see their federal return be a little bit later, but not much of a difference.”

Kerzman says to avoid delays, taxpayers should file electronically, and have their refund direct deposited into their bank account.

“That’s where you’re going to see the biggest delay is if you have to mail in your return versus electronically filing it.”

This year, taxpayers will have to account for any COVID relief money they received in 2021. The IRS has started sending those statements to taxpayers in the mail.

“The two biggest COVID relief funds that were distributed in 2021 was that third economic income payment as well as that advanced Child Tax Credit. The IRS is issuing letters for both of those types of payments, and you will also need that for your taxes.”

In the end, Kerzman believes if a taxpayer has their documentation together, the 2021 income tax filing should go smoothly.

“I think the only difference for 2021 Filing Season is making sure that you have your numbers accurate for that third economic income payment, as well as that advanced child tax credit, because if you don’t report the exact amount, the IRS will catch it on the back end, and then you will get a letter for that. But besides those two things, everything else from what we’re seeing so far is pretty standard.”

Taxpayers have until April 18th to file their taxes or request an extension.

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