As the IRS works through millions of backlogged files, they are also stepping up its game to get through more tax returns faster, now that the 2022 tax season has ended. Hiring Spree The first thing the IRS is doing includes a large-scale hiring effort. In April, MarketWatch reported that the IRS is looking to hire 5,000 people in the near future. Many of the positions are entry-level, which means applicants don’t need prior experience working in the government or tax and financial sectors. So far, they have made more than 2,500 conditional job offers. And those 5,000 new hires this year are expected to be met with an additional 5,000 in 2023. To expedite this process, lawmakers have given the agency the power to complete the hiring process in as little as 30-45 days, to help get people-oriented and into their roles quickly. As of late March, the IRS still had 7.2 million unprocessed tax returns, including 2.7 million unprocessed tax returns received in the tax year 2021. By March 31, the number of unprocessed returns was down to about 5 million total. The speed with which the IRS is working through the backlog can be attributed, in part, to a new error resolution function that greatly cuts down on the number of pending cases and helps tie up other loose ends. Voice & Chatbots We also recently talked about the IRS’ efforts to implement voice and chatbots to aid in the record-breaking number of calls they were receiving during the 2022 tax season. With more than 3 million calls per day during the height of tax season, automated solutions are the only way the IRS can even begin to manage that customer call volume. And even with the new hiring goals, they have rolled out, there are still lots of people who call and have simple questions that can be cleared by artificial intelligence. Since the pandemic, many institutions, even the oldest and least technologically inclined organizations within the federal government, have seen how much the …
Latest Updates for 2022 Tax Season & Beyond
You made it! 2021 has ended and it’s time to start looking ahead to the 2022 tax season. Here are the latest updates. Tax Deadlines There are lots of tax deadlines that have already lapsed as 2021 drew to a close, and there are lots more just around the corner. Social Security, Medicare, and withheld income tax are all due on January 18. And January 31 is the deadline to send out forms 1099-NEC. Tax Day this year is still set for April 15, 2022, but that is still subject to change should any new developments in the coronavirus pandemic take place. If you are hoping to get an extension, Form 4868 needs to be filed before April 15, and your tax due date will be pushed back to October 15, 2022. Kentucky taxpayers should also be aware of a recent deadline change in light of the tornadoes that struck certain areas in the state. Victims of the December 10 disasters will have until May 16, 2022, to file individual and business tax returns. ACA Updates ACA Open Enrollment runs from November 1, 2021, to January 15, 2022, so you still have time to enroll or change your marketplace coverage for 2022. There are also new opportunities – like zero-premium plans – for individuals with extremely low-income levels. For more on the ACA changes for 2022, see our previous blog article. 1099-K Updates There are also some changes to 1099-K reporting coming in 2022. If your business or solopreneur gig includes selling products or services on sites like Etsy, eBay, or even Uber, you’ll need to fill out the 1099-K. Right now, online sellers only get these forms if they had 200 or more transactions with a combined $20,000 or more. Starting in the tax year 2022, sellers who have sales totaling $600 or more will be issued this tax form. Inflation Inflation has been a hot topic this year, with rates rising 6.8% in 2021 – the highest jump since 1982. Before these spikes, the IRS had already determined the inflation adjustment rates for tax year 2021 in October 2020. And …
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