Tax season opens Jan. 24. Treasury says be ready for frustration

When the U.S. tax filing season begins in two weeks, taxpayers should be prepared for delays as returns and refunds are processed, and for difficulties in reaching the IRS, Treasury officials warned on Monday.

Taxpayers and return preparers should gird for a challenging and frustrating tax season as many of the processing delays and customer-service shortages that have plagued the Internal Revenue Service for years will persist this year, Treasury officials told reporters. The officials said funding cuts and staffing shortages due to the ongoing health crisis are causing the problems.

“The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays,” IRS Commissioner Chuck Rettig said in a statement Monday. “Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year.”

Returns can be filed as early as Jan. 24, with the tax filing deadline set at April 18 for most taxpayers because of a District of Columbia holiday on Friday April 15, an official said. Taxpayers in Maine and Massachusetts have until April 19 to file and pay their liabilities thanks to the Patriots’ Day holiday in those states.

The filing season begins as the IRS is still grappling with several large administrative challenges that have been exacerbated by the pandemic, along with additional requirements -- such as the processing of stimulus payments and advance child tax credits.

IRS representatives were only able to answer about 10% of phone calls to the agency last filing season, and, as of mid-november 2021, the agency still had a backlog of roughly 8.6 million returns to process. The IRS would typically start the filing season with a backlog of fewer than 1 million returns, an official said.

The IRS says it generally processes refunds within about three weeks of a tax return’s submission. The agency recommends filing electronically and requesting for the refund via direct deposit -- rather than a mailed check -- for a faster turnaround.