tax issues

Every tax season has its own headaches. Let's discuss some of the top tax issues of 2022. IRS Backlog Due to the COVID-19 pandemic, there are still millions of tax returns that were filed in 2021 (for tax year 2020) that the IRS has yet to finish working through. According to a recent NPR article, the agency is understaffed and underfunded. Things are moving slowly, but the IRS is implementing several new initiatives in the coming months that are supposed to help combat these issues. It was a perfect storm for tax season 2022: the IRS understaffing issues meant long phone calls, often ending without getting through to the party you needed, the combination of unprocessed returns and refund requests from this year and last year, and more. There were even several reports of businesses and individuals being contacted by the IRS to send in forms that were previously sent. And this backlog only further overburdened the IRS as the 2022 tax season progressed. There is some light at the end of the IRS tunnel when it comes to the tax issues of 2022 – the agency is currently implementing several solutions that are aimed at supporting the larger volume of work and lower staff numbers through automated and e-filing channels. To ensure that you get your 2022 and future filings back more quickly, the IRS recommends collecting and double-checking all documentation before you send it and switching to e-filing your taxes if you don’t already. New Changes and EIP Amnesia Other 2022 tax season issues include new tax code and COVID program-related changes, and, surprisingly, the fact that many people didn’t remember they received an Economic Impact Payment at the beginning of 2021. It’s been a crazy year, and with all the regulations and restrictions often being extended or changed with just days left on deadlines, it’s easy to imagine how a single EIP could fly under your radar during the 2022 tax season. Because of this EIP amnesia, many professional tax …

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