(InformingNews.com) – The tax deadline for 2022 is April 18 due to Good Friday falling on the 15th. Despite having a few more days to file, many people still feel the crunch. This year, the IRS is also in a pickle. The agency is struggling due to backlogs from previous years.
Some tax refunds may be delayed this year. Here's why.
https://t.co/Hwoik3H4gh— CBS Mornings (@CBSMornings) March 29, 2022
The backlog is about 7.5 million tax returns, exceeding the typical 1 million. In a statement on March 10, Deputy Secretary of the Treasury Wally Adeyemo blamed underfunding and inadequate resources for the massive backup of unprocessed returns.
Officials say errors in math and improperly filled out forms have added to the slowdowns. In addition, the Economic Impact Payments have reduced the speed at which returns go through the system.
Another problem is that Congress changed the tax law for Earned Income Credit after the IRS updated its systems for this year, which caused additional headaches for processors. Any return taking advantage of the new regulations allowing claiming of 2019 or 2020 income to qualify for the credit must go through the system manually.
The IRS usually issues refunds within 21 days, but that won’t be the case this year. The agency even issued a warning on its website not to expect fast processing or refunds. Adeyemo said employees are working to tackle the backlog problem and cut the workload to more manageable levels going into the next tax season.
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