Taxpayers Face Overloaded IRS          01/23 09:15

   

   WASHINGTON (AP) -- Count 30-year-old Ethan Miller among that subset of 
Americans who are actually eager to file their taxes once income tax filing 
season opens on Monday.

   The financial planner who lives in Silver Spring, Maryland, is looking 
forward to claiming the new deductions that will come from buying a home. He 
also wants to get a jump on a tax season that promises to bring lots of extra 
headaches and delays for filers this year.

   "I'm trying to get a head start on my taxes as much as possible," Miller 
said, adding that he is not too nervous about forecasts of extra delays because 
he will file online and will not be waiting for too big a refund.

   Plenty of other filers, though, may be in for more heartburn.

   An IRS worker shortage, an enormous workload from administering 
pandemic-related programs and stalled legislation that would have given the 
agency billions of dollars for more expeditiously processing returns will 
combine to cause taxpayers pain this filing season.

   "The IRS right now has unacceptable backlogs and the customer service that 
people are receiving is not what the American public deserves," White House 
press secretary Jen Psaki acknowledged Friday. "The agency has not been 
equipped with the resources to adequately serve taxpayers in normal times, let 
alone during a pandemic."

   She stressed that the problems predate the Biden administration and she 
urged understanding for beleaguered workers already saddled with huge backlogs. 
"It's going to take some work, it's going to take some time and I think people 
need to understand that they need funding," Psaki said.

   Agency officials are already warning filers that "in many areas, we are 
unable to deliver the amount of service and enforcement that our taxpayers and 
tax system deserves and needs," as IRS Commissioner Chuck Rettig put it earlier 
in the month.

   Delays in processing are to be expected -- especially because the IRS says 
it still is working through 2020 tax returns.

   During the 2020 budget year, the IRS processed more than 240 million tax 
returns and issued roughly $736 billion in refunds, including $268 billion in 
stimulus payments, according to the latest IRS data. In that same time frame, 
59.5 million people called or visited an IRS office.

   Donald Williamson, an accounting and taxation professor at American 
University in Washington, said he expects "weeks and weeks" of IRS delays in 
2022.

   "You can blame Congress or the IRS. I imagine they're trying to do the right 
thing but it just adds to further complexity," he said. "My advice in 2022 is 
file early, get started tomorrow and try to put your taxes together with a 
qualified professional."

   Williamson said he advises his clients to file electronically, and those who 
expect hefty refunds in the tens of thousands should expect greater delays. 
Most backlogged returns were filed on paper and are amended returns.

   Deadlines to file have been extended in the past two years due to the 
pandemic. It is unclear whether this year the agency will offer similar leeway 
to taxpayers.

   There will be plenty of new issues to navigate this year.

   For example, individuals who are eligible to claim the child tax credit and 
have gotten advance payments throughout the year may get a smaller refund than 
they normally would see.

   People who did not get stimulus checks that they were qualified for as part 
of the pandemic relief package might yet be able to claim a " recovery rebate 
credit " on their taxes.

   On Thursday, the IRS released a list of " Top 5 Things to Remember," with 
suggestions for taxpayers on what documents to pull together and what to do if 
their 2020 returns still have not been processed.

   The IRS anticipates that most taxpayers will receive their refund within 21 
days of when they file electronically, barring any issues with processing their 
return.

   But plenty of pitfalls remain, in part due to staffing troubles at the IRS.

   Tony Reardon, president of the National Treasury Employees Union that 
represents IRS workers, said the agency "has a hard time recruiting because 
they're up against Burger King or McDonald's," which offer similar pay without 
requiring workers to "deal with confusing rules and regulations."

   As of Thursday, the agency's careers website listed at least 180 open jobs, 
including clerks and tax examiners paid as little as $11 an hour. Of those, 42 
positions were open to the public; most were available only to internal 
applicants.

   A hoped-for $80 billion infusion for the agency was included in versions of 
President Joe Biden's proposed package of social spending programs but that 
stalled on Capitol Hill.

   Reardon said the IRS "is in a lot of trouble in terms of how it is 
effectively able to carry out its mission and that has to be rectified."

   "I think clearly the taxpayer gets the brunt of this," he said, adding that 
IRS workers get "the brunt of that blame under horrible circumstances."