Today, I'd like to discuss the IRS backlog. There were headlines rolling out in late September of previous year 2021 stating how the IRS's backlog has increased by 3200 percent compared to 2019. A lot of this stemmed from the requirement to file over 8 million paper tax returns and the IRS's language in response to the pandemic.
The good news is that the IRS is started to process these returns. We're starting to see some movement in the returns. People are getting refunds, ERC credits, and a lot of other company files are now getting letters back on what they need to file. But this process has been in fullswing long before the percentage was announced in September 2021.
All the way back in February 2021, we were getting late responses. So, if you've been waiting for a response from the IRS, it should be arriving soon. Of course, the IRS has not set any hard deadlines for completing all of this by this date, but given that the IRS is reopening the 2021 tax filing season in 2022 for last year's taxes, we expect the delays to continue.
You can inquire about the status of your returns by calling the IRS. We've heard that the wait time ranges from two and a half to eight hours, and that people are being disconnected.
It's not fun, but the IRS claims to be working on it and attempting to reduce the timelines. They're attempting to get the 8 million paper returns out the door as quickly as possible. I wish I had more good news, but patience is essential. They've begun working on the 8 million returns that were late.
CEO & Tax Strategist - SaveOnTaxBill