WASHINGTON — The federal tax filing season will run from Jan. 24 to April 18 this year, the Internal Revenue Service said on Monday, warning in its announcement that staffing shortages and paperwork backlogs could make for a messy and frustrating experience for taxpayers.
Officials from the Treasury Department stated Monday that the I.R.S. would struggle to respond to taxpayers with questions. Officials from the Treasury Department stated that they would not be able to answer taxpayers’ questions quickly and that they expect a lower level service. They blame Republican legislators who have blocked efforts at increasing funding for the agency.
Biden’s administration has requested $80 billion more for the I.R.S. in a decade. to increase its enforcement and customer service capabilities, as well as increasing its staff by almost 87,000 employees and upgrading its technology. That request is part of the administration’s Build Back Better Act, which is stalled in Congress. According to the Treasury Department, a broader enforcement power of the I.R.S. could yield $400 billion in additional tax revenue over ten years. The Treasury Department estimates that the federal government could generate $400 billion more tax revenue by increasing the enforcement power of the I.R.S.
Treasury officials noted that in the first half of last year, fewer than 15,000 employees were available to handle more than 240 million calls — one person for every 16,000 calls.
Despite the fact that the U.S. population has increased by 60 percent since 1970, and the tax code has become more complicated, the I.R.S. workforce has remained stable. According to the Treasury Department, there has been no change in the size of the I.R.S. workforce. The agency now has fewer auditors than ever before since World War II.
“In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs,” Charles P. Rettig, the I.R.S. In a statement, Charles P. Rettig, the I.R.S. commissioner, stated that. “This is frustrating for taxpayers, for I.R.S. employees and for me.”
He added: “Additional resources are essential to helping our employees do more in 2022 — and beyond.”
Republicans seized on the Biden administration’s plans to beef up the I.R.S. Last year, Republicans seized on the Biden administration’s plans to beef up the I.R.S. and issued dire warnings that this agency would be used to spy on Americans as well as target conservatives. They were able to stop a proposal that would have required banks submit additional taxpayer data for the I.R.S.
Because of the distribution of last year’s pandemic-related financial impact payments and child tax credits payments, this year’s tax season is more complicated than usual. Taxpayers will have to report the amount they received.
The I.R.S. The I.R.S. is encouraging taxpayers to file returns electronically and stated that refunds should be processed within 21 days.
Tax Day is usually on April 15. However, most tax payers will have to wait until April 18 due to the Emancipation Day holiday in Washington. Filing deadlines for state taxes may differ.
Source: NY Times