2022 Tax Season

The Internal Revenue Service (IRS) began accepting 2021 tax returns on Monday, January 24, 2022. This is a few weeks early than the 2021 tax season. Even though the IRS is accepting tax returns sooner this year does not mean they are ready.

The Commissioner of the IRS, Charles P. Rettig, has admitted taxpayer services has been subpar in recent months, with a backlog of six million tax returns yet to be processed from the 2021 tax season (2020 tax returns). Additionally, Treasury officials have acknowledged that this tax season will be ‘frustrating’ for Americans. Unfortunately, the IRS says they will look for ways to improve but have not provided any sound solutions.

Greenwalt CPAs and its clients have experienced these frustrations first-hand. Some clients have waited months for tax refunds and Greenwalt staff have had less-than adequate experience trying to contact the IRS to address tax notices and get answers for clients.

The American Institute of CPAs (AICPA), and a diverse coalition of influencers, have asked the IRS to do more for the American taxpayers and practitioners. The AICPA has suggested that the IRS pause automated tax notice action, align with holds on taxpayer’s accounts, and offer relief from underpayment and late payment penalties. So far, the IRS has not made any of these suggested changes.

As said by Commissioner Rettig, “The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays. Filing electronically with direct deposit is more important than ever this year. We urge extra attention to those who received an Economic Impact or an advanced Child Tax Credit last year. People should make sure they report the correct amount on their tax return to avoid delays.”

Partnership and S-Corporation tax returns are due on March 15, 2022. Individual and most C-Corporation tax returns are due on April 18, 2022. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Individual taxpayers requesting an extension will have until Monday, October 17, 2022, to file.

Greenwalt CPAs is urging their clients to get their tax documents to their tax professional sooner rather than later this year to expedite filing and avoid delays. If you have any questions, please reach out to your specific Greenwalt CPAs tax professional.