With roughly 4 weeks until the 2021 filing deadline, the IRS is still sifting through millions and millions of unresolved tax returns. Commissioner Charles Rettig, on the other hand, believes that the backlog will be cleared by the end of the year.
Rettig testified before the Ways And means Committee on Thursday that the backlog, which has been caused by years of pandemic-related office closures, understaffing, increased responsibilities, and funding cuts should “definitely” be resolved by December.
They will be ‘healthy’ by the end of the fiscal year 2022 and will start the 2023 filing period with regular inventories, barring any major events, reports IRS.
Rettig’s vow to Congressional lawmakers comes just a week after the government announced interest in hiring 10,000 people to help with the bottleneck, with 5,000 new hires continuing in the coming weeks. A portion of the $1.5 trillion comprehensive spending plan, President Joe Biden signed off on a $12.6 billion for the agency for 2022, up 6% from 2021.
Rettig stated during his videotaped deposition that a successful, properly operating IRS is critical to the country’s future progress, despite the agency’s many flaws.
According to IRS Commissioner Charles Rettig, the backlog of tax returns will be cleared ‘definitely’ by the end of 2022.
Taxpayers received generous rebates in 2022. With another issue (increased gas prices as a result of the Russian invasion), tax rebates could help people get some much-needed cash. In March of 2021, the aggregate refund was ,815, according to IRS figures.
The mean federal tax return figure will increase by 13.7 percent in 2022, according to taxpayers. Taxpayers got $3,401 between January and March. After filing your 2021 returns (due in 2022), you may be eligible for a higher refund.
According to tax specialists, not every taxpayer would receive a greater refund. Susan Tompor, a tax specialist, listed the following reasons:
– Many people who have returned to work are earning higher salaries, which may put them at a higher tax rate than the previous year.
-Unemployment compensation will be taxable in 2021, so you may have to pay taxes on them now.
-The tax credit was referred to as “advanced.” Taxpayers were given a benefit ahead of time.
-Due to the fact that they did not make any payments in 2021, taxpayers will not obtain deductibility for college loans.