by The IRS has always claimed that it processes every tax return that arrives at its desk within 21 days of application. But this year, IRS Commissioner Chuck Rettig has announced that processing tax refunds might take way longer than 21 days. Unfortunately, the IRS Commissioner did not give any specific timeline regarding refund processing but he did suggest some ways in which you can accelerate the same.
So, why exactly will the tax refund arrive late in 2022? What does that mean for the plans you had with your tax money? How can you receive your tax refund payment earlier? And how can you plan better to not let the delay affect you? Let’s find out.
Rettig blamed the pandemic-related stress on the system for the delay
Believe it or not, the IRS has had a really busy year in 2021. In the media statement where Rettig announced the expected delay, he mentioned that the IRS dealt with staff availability issues due to the pandemic throughout 2021. This has piled up the unprocessed files from the tax year 2020 on top of which the IRS had to deal with third stimulus checks and monthly child credit payments.
Rettig revealed that as of December 2021, the IRS still had over 6 million unprocessed tax return files on its desk from 2020 and most of these have been sitting around because of errors made by taxpayers while filing their returns. Each file has to be verified manually by an IRS employee and the shortage of staff for 2 consecutive years did not help the IRS’s cause.
Additionally, the IRS had to process the third stimulus checks in March 2021. Then came the advanced monthly payments of Child Tax Credit to eligible taxpayers, all of which again required manual verifications in most cases. In Rettig’s words, these were really time-consuming and the IRS is still trying its best to process tax returns as early as possible with the resources it has available at its disposal.
But there is a silver lining
Along with the glum news of tax refund delays in 2022, Rettig revealed that there are ways through which taxpayers can accelerate their processing time. And the best strategy is to opt for direct payments instead of paper checks that help to speed up processing at every level. The IRS gives taxpayers an option to receive their tax refund directly in their bank account. The system is fairly automated and ensures faster delivery.
Another way taxpayers can ensure quick processing is by calculating their Recovery Rebate Credit right. Of the 6 million tax return files still pending from 2020, a majority have flaws in the Recovery Rebate calculations. To help yourself, log into your IRS account to get the exact break up of the stimulus money and Child Tax Credit you have already received. Claim the exact credits so that the IRS employees do not have to double-check your application.
What about your plans surrounding the tax refund money?
Unfortunately, they will have to wait because the IRS is going to have another busy year ahead. With the pandemic still threatening humanity, no one can blame the Federal Authority for processing delays. But if you were planning to buy a used car with your tax refund money, you might not have to wait for your tax refund money to actually arrive. Because at Family Auto buy here pay here in Spartanburg, you can get financed with a down payment of as low as $500.
Plus, you can trade in your old car at Family Auto to increase your down payment. And we give you the best bad credit auto loan in Spartanburg that is both affordable and beneficial along with a comprehensive 2 years/36,000 miles warranty on the vehicle you buy. So, the IRS may delay your tax refund but that does not mean you have to wait to buy a used car. Visit Family Auto and design the bad credit financing to suit you.