Submitted by Sestini & Co
| on Tue, 03/29/2022 - 12:08 | In international tax
The April 18th tax filing deadline less than a month away for US citizens and others required to file a tax return in the US.
In 2021 the tax filing deadline was extended to May 17th but as yet no guidance has been given on an extension for this year’s filings despite the IRS reportedly having a backlog of over 6 million unprocessed tax returns for the current tax season, and almost 6 million pieces of taxpayer correspondence that still require processing.
It seems almost certain that tax returns will not be processed on time and that there will be delays in issuing tax refunds. Queries are likely to suffer from delays too and the IRS telephone service only has an answer rate of around 10%, according to the National Taxpayer Advocate.
In March 2022, IRS Commissioner Charles P. Rettig outlined a plan to get on top of the backlog, caused by the Covid pandemic and other factors. This includes:
- Employing additional staff (with the goal of recruiting 10,000 staff over the coming year)
- Creating a 700-strong ‘surge team’ to process new returns
- Reassigning current IRS employees to process current inventory such as amended returns and taxpayer correspondence
- Allowing overtime payments to current IRS employees
- Allowing additional ccontractor support to help with areas such as mailroom operations, transcriptions
- Contractors will also help input paper returns into the system (around 10% of returns are still received on paper)
- A new automated tool to correct return errors
- Suspension of around 40 form notices
- Improved automated tools such as online live assistance, new voice and chatbots
The IRS has also announced additional assistance to taxpayers to help reduce processing delays:
- Sending taxpayers more information to help prevent delays in processing
- Providing expanded self-service online portals to provide assistance in areas such as online payment agreements, payment transcripts, updating personal information, and for Identity Protection PINs
- Extra hours for in-person taxpayer support at Taxpayer Assistance Centers
- Expanded callback options for customers on the IRS toll-free lines
How we can help
If you’re looking for some advice in relation to your US tax or are grappling with other financial issues during this time, why not talk to us. Here at Sestini & Co we dedicate considerable time and expertise to keeping up with changing case law and ensuring we know the tax rules.
If you need help with any tax-related issues and would like to speak to us, give us a call on 01761 241 861 or email us today.
We will be pleased to discuss by phone or to invite you to an online consultation