HERE’S HOW LONG IT WILL TAKE TO GET YOUR TAX REFUND IN 2022

HERE'S HOW LONG IT WILL TAKE TO GET YOUR TAX REFUND IN 2022 (1)

In 2022, here’s how long it will take to obtain your tax refund.

Three-quarters of all Americans receive a yearly tax return from the IRS, which is frequently the largest check of the year for a household. However, with the tax season officially underway, taxpayers may witness a repetition of last year’s processing snarls, when the IRS held up around 30 million taxpayers’ forms – and refunds.

The Treasury Department cautioned on Monday that this year’s tax season will be difficult, with the IRS beginning to process returns on January 24. This is partly due to the IRS’s massive backlog of 2021 returns. The government had 6 million unprocessed individual returns as of December 31, a considerable drop from a backlog of 30 million in May, but significantly more than the 1 million unprocessed returns that is more normal at the start of tax season.

Taxpayers may be concerned about delays in 2022, but the IRS announced this month that most Americans should receive their refunds within 21 days of filing – with certain conditions. Because of regulations designed to deter fraud, claiming the Earned Income Tax Credit or the Child Tax Credit will slow down your tax return, but people who claim those credits and file their returns on January 24 or close to that date may not receive their refund until early March, according to the IRS.

Other concerns, such as math problems or improperly declaring how much you got from advanced Child Tax Credit installments, might also delay down your return. In such circumstances, your tax return may be highlighted, resulting in delays of weeks or even months.

However, due to no fault of their own, some taxpayers may mistakenly claim the incorrect amount on their tax returns this year. The Internal Revenue Service said on Monday that some of its Child Tax Credit letters — letter 6419 — included erroneous information regarding the amount certain individuals received. The IRS is requesting that people refer to the letter while completing their tax returns.

However, if this occurs, the taxpayer’s return may not match what the IRS has on file, resulting in the return being flagged — and delays in having their return processed and their refund mailed to them, according to Larry Gray, a CPA and government relations liaison for the National Association of Tax Professionals.

“People may not know the letter is incorrect, and what is the IRS doing to send out a follow-up message to avoid a larger backlog in the next season?” He made the remarks on a conference call to address tax professionals’ worries about the current tax season.

According to the trade newspaper CPA Advisor, if everything goes well, taxpayers who e-file can get their refunds via direct deposit as soon as one week after filing, based on prior years’ processing time. It’s crucial to remember that processing time normally slows down when tax season begins and the IRS processes more returns, according to the IRS.

Continual backlog

Meanwhile, tax experts say there are several things people may take to assist secure a timely tax refund, which is especially critical this year given the IRS’s backlog. National Taxpayer Advocate Erin M. Collins presented a report to Congress on Wednesday, warning that she is “very worried about the forthcoming filing season” due to the backlog, among other difficulties.

“The first thing you know if you’re going to make a dinner, you have to have the kitchen cleaned up after the previous meal,” said Mark W. Everson, vice chairman of Alliantgroup and former IRS Commissioner. “It basically snowballs into a disastrous situation.”

Delays in processing tax returns are one of the agency’s most urgent issues, according to Collins’ report, which depicted an organization in crisis.

IRS delays of “weeks and weeks”
Although the IRS claims that most refunds would be sent within 21 days, experts caution that delays are probable, citing the agency’s ongoing work on 2020 tax returns.

According to the most recent IRS figures, the IRS processed over 240 million tax returns and issued over $736 billion in refunds for the 2020 fiscal year, including $268 billion in federal stimulus payments. Approximately 60 million individuals contacted or visited an IRS office during that time period.

Donald Williamson, a professor of accounting and taxation at American University in Washington, predicts “weeks and weeks” of IRS delays in 2022. “In 2022, my recommendation is to file early, start tomorrow, and attempt to work with a knowledgeable expert to put your taxes together.”

To make matters worse, tax preparers told CBS MoneyWatch that it is still difficult to reach IRS officials on the phone. Collins said that the IRS responded just around one out of every nine taxpayer calls during fiscal year 2021. “Many taxpayers are dissatisfied because they are not getting answers to their issues,” she said.

“In the old days, you’d call the IRS and wait 5-10 minutes,” said Christian Cyr, CPA and president and chief investment officer of Cyr Financial. But now, he claims, his CPAs must wait for hours to meet with an IRS person, with no assurance of ever speaking with one.

Given that the average refund last year was almost $2,800, ensuring a flawless tax filing comes with a lot on the line. Tax professionals and the IRS offer advice on how to secure a tax refund within 21 days after filing.

1. Submit electronically

This is a step that the IRS is emphasizing this year. Although some people prefer to submit paper returns and others do not have an option, the IRS claims that taxpayers who file online have a better chance of having their returns completed fast.

This is due to the IRS’s reliance on computers to electronically process submitted returns, whereas paper returns must be processed by humans. During the early stages of the epidemic, the IRS closed its offices and personnel stopped accepting mail, causing paper return processing to be delayed.

Aside from employee difficulties caused by the epidemic, the IRS’s personnel has not kept pace with population growth. Despite a 60% increase in population, the agency’s employment is presently the same as it was in 1970. This implies fewer people will be needed to manage a higher number of returns.

According to Taxpayer Advocate Service data, around 10 million persons submitted paper forms last year, accounting for approximately 7% of the 148 million returns filed in 2021. Tax experts encourage individuals to join the approximately 138 million taxpayers who currently use e-filing.

“Paper is the IRS’ Kryptonite, and the agency is still buried in it,” said National Taxpayer Advocate Collins on Wednesday.

2. Request a refund by direct deposit.

The IRS also advises people to arrange for direct deposit of their refunds. According to the agency, the quickest method to obtain your money is to employ a combination of e-filing and direct deposit, which transfers the money directly into your bank account.

Last year, around 95 million customers got refunds, with approximately 87 million opting for direct deposit. According to the IRS, most taxpayers who file electronically and choose direct deposit will get their refund within 21 days, providing there are no difficulties with the return.

3. Don’t make educated guesses.

The IRS compares its statistics to the figures people provide on their tax filings. If there is a mismatch — example, your W2 says you made $60,000 but you claim $58,000 on your tax return — the form is highlighted for manual review by an employee.

If this occurs, it is probable that your tax return may be delayed for many weeks or perhaps months. That’s why tax professionals encourage consumers to double-check forms to verify they’re reporting data correctly. Filling out your tax return should not be based on “word of mouth or the honor system,” according to Cyr. “I can assure you that will create delays.”

4. Keep all IRS mailings concerning stimulus and CTC.

In that vein, the IRS is sending letters to taxpayers who received the third federal stimulus check in 2021, as well as the advanced Child Tax Credit payments, this month.

These letters will advise each taxpayer of what they received via these programs in 2021; they are vital records to have since you will need to refer to those amounts when completing your tax return.

Tax returns were delayed in 2021 in large part because taxpayers made errors in submitting their 2020 stimulus payment amounts on their forms, causing their tax files to be highlighted for manual scrutiny.

“Don’t have any difficulties that are the result of your own carelessness,” Everson urged.

However, because some taxpayers got inaccurate CTC letters, the IRS is asking them to double-check how much they received by entering into their accounts at IRS.gov.

Two letters will be sent by the IRS:

Letter 6419 — notifying taxpayers of their CTC payments in advance. The agency started issuing these letters in December and will keep doing so in January.

Letter 6475 — Concerning the third stimulus payment. This letter will be delivered in late January.
Keep both of these letters and refer to them while completing your tax return, according to tax experts.

If you claim these tax benefits, you may face a wait.
Even if you do everything right, there are a handful of difficulties that might cause delays.

The IRS states that it will not be able to provide refunds including the Earned Income Tax Credit (EITC) or the Child Tax Credit before mid-February. “The statute gives this additional time to assist the IRS in preventing the issuance of false refunds,” the IRS announced this week.

That implies that even if you file as soon as possible on January 24, you may not receive a refund within the 21-day period if your tax return includes one of those tax credits. In reality, the IRS is advising taxpayers who claim these credits that their refunds would most likely arrive in early March, presuming they submitted their forms on or around January 24.

The reason is a 2015 rule that delays refunds for anyone who claim these benefits. The regulation was intended to combat fraudsters who use identity theft to steal taxpayer refunds

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