Treasury Dept warns IRS delays ahead

The IRS Has Had A Difficult Year

Despite the fact that tax season is fast approaching (opening January 24 with a April 18 deadline), the IRS is unpleased. Last week, the Treasury Department issued a statement warning that the IRS has had a trying year, and taxpayers should anticipate delays as returns are processed.

According to Treasury officials, budget cuts and staff shortages have created a huge backlog at the agency, with a disappointing season on the way. While the IRS usually has about 1 million unresolved returns when it begins filing season in mid-November, the amount was approximately 8.6 million by early November 2021.

How did this happen?

  • Many in-person processing centers had to shut down as a result of the pandemic.
  • The IRS had budget cuts before the pandemic, with a roughly 25% reduction in personnel.
  • IRS's workload was increased with Federal Covid relief, like stimulus payments and the expanded Child Tax Credit

IRS staff were so overburdened that, in the first six months of 2021, there was only one IRS employee to handle every 16,000 calls to the agency.

What can you do if you're seeking for a quicker refund? The Treasury advised consumers to file early, online, and request their cash through direct deposit.

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