After a staff shortage during the pandemic, the IRS has hired new employees, but the challenge is still great. Last year’s tax returns have yet to be processed by the IRS. Taxpayers will file millions of returns this year, and the IRS is swamped with paperwork.
In order to clear the backlog, authorities will need a streamlined approach. A large number of returns remained unprocessed by the IRS on December 31, according to CNBC, and the processing of 2021’s tax returns may take some time.
IRS Workers Are Sparse
Experts recommend a variety of ways to shorten the time it takes to process a return and receive a refund. According to CNBC, the IRS only had 15,000 employees during the first six months of 2021 to answer around 24 million customer calls or one person for every 16,000 customers.
Experts recommend that taxpayers avoid as much paperwork as possible and that they switch to electronic mode to expedite the process.
To expedite the processing of tax refunds and other pending payments, taxpayers must take advantage of advanced features. The IRS will be able to verify data more quickly using the electronic method.
Taxpayers Should File Electronic Tax Returns
“Paper is the IRS’s kryptonite, and the agency is buried in it,” said Erin Collins, the National Taxpayer Advocate.
It is estimated that the IRS received 17 million original paper returns last year, with processing times of up to ten months.”
As a result of incorrect information, taxpayers may face lengthy delays in receiving their refunds. To make things more difficult, officials will have to go through the same process twice or three times.
The IRS has sent letters to families who received enhanced Child Tax Credits or Stimulus payments, or both, and they need to be extra careful when filing their returns.
It’s important for those who are receiving the remaining portion of the Child Tax Credit payments or additional credit to submit accurate tax returns. If you haven’t filed your taxes yet, you have until April 18 to do so, according to the IRS.