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Tax Alert: IRS Faces Backlogs this Filing Season

02/15/2022 Dan Kraft

As we continue through this already hectic tax fling season, we want to keep you informed of recent updates to the IRS’s backlog issues and filing issues that may delay you getting your refund. Nina Olson (former head of the Office of the Taxpayer Advocate, a government office dedicated to helping taxpayers solve their problems with the Internal Revenue Service) recently authored an article of a couple easy ways the IRS could fix itself. As a result, directly or indirectly, the IRS announced on February 9th that it would suspend a handful of letters and automated collection notices. See both articles in the links below.

Backlog Problems and Refund Delays

The IRS as well as many practitioners are urging Americans to electronically file or e-file and request direct deposit when filing their 2021 tax returns, and to do so as soon as possible to avoid delays in processing and receiving refunds. They are also encouraging taxpayers to pay electronically when possible either through the IRS.gov website or through their bank or financial institution.

Individuals who Received an Economic Impact Payment or the Advance Child Tax Credit Last Year Should be Extra-Careful

Families who received advance child tax credit payments need to reconcile the advance payments they received in 2021 with the amount of the child tax credit they can properly claim on their 2021 tax return. Taxpayers should receive a letter from the IRS, Notice 1444-C or Letter 6475, that will show the amount received and help to reconcile these amounts. Eligible families who did not receive any advance child tax credit payments can claim the full amount of the child tax credit on their 2021 federal tax return. Again the IRS will send a Letter 6419 that will provide the total amount of the advanced child tax credit. More information about the 2021 advance child tax credit, economic impact payments and other COVID-19-related tax relief is available on IRS.gov. If you haven’t received your letter(s), you can obtain the information via the IRS.gov website.

Start Pulling Together Tax Information ASAP

The IRS says make sure all your documents are together when you start working on your return and to file electronically. We advise you start gathering the paperwork you can and contact your VonLehman tax advisor with any questions at 800.887.0437.

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