Tax season is itself enough to leave people in sweats but IRS is warning people that it can be harder this time. This tax season is riled with backlogged cases of the past year.
Over 35 million unprocessed returns
While every year IRS enters the new tax year with over one million backlogged cases, the backlogged cases are over 35 million this year, according to the Washington Post. The budget cuts and office closures due to the Covid pandemic led to this less-than-ideal scenario for the tax authority.
Build back better stalled in Senate
IRS commissioner Chuk Rettig has confessed that IRS is unable is deliver the amount of service that America needs and deserves. To increase its working capacity, the Biden government has requested more funds for IRS in its Build Back Better Act, but the bill is stuck in the Senate without much hope now.
Online Filing is faster
Processing of digitally submitted tax documents requires minimum interference by the tax officials. As the number of IRS employees processing returns, this year is going to be less than in the past, it is ideal that you file your returns online to get faster returns. Do not wait for the last year’s return to start filing this year. To be on the safe side and avoid, the IRS expects you to start filing your taxes as early as January 24. But if you are yet to receive the IRS letter for stimulus checks, it would be better to wait and face delays if any.
Use IRS Free File Program for free
Low-income taxpayers can use the Free File Program started by IRS in 2003 to file their taxes without paying a penny. The annual income limit changes to adjust for inflation but it is kept so that 70% of the American population is targeted.
If you lie in an income bracket of more than what is eligible for free tax preparation on the IRS tool, certain tax software tools provide free tax preparation for individuals. The only issue can be that some of these tools only cover federal tax preparation costs and charge for the state taxes.