Monday is Tax Day, the federal deadline for tax filing and payment — the IRS will receive tens to millions of last-minute electronic and paper filings.
The IRS received more than 103,000,000 returns in this tax season and had issued more that 63 million refunds totaling more than $204B.
Last year, more than 169 million completed income tax returns by the end. This means that nearly 40% of taxpayers this year are still unaccounted for. Many people scramble to submit their documents by Monday.
Nina Tross, National Society of Tax Professionals, says that if someone hasn’t filed taxes by now, they’re better off filing an Extension.
She added that “People don’t realize that filing an Extension has zero effect” provided they have paid their Income Taxes by Tax Day.
Tross stated that an extension is simply a filing of a return at another date. If you rush to complete a return in order to get it out the door and then have to amend it later, it’s more likely that you will get a second look from IRS.
She said, “It’s better to extend than to amend.”
This year, the IRS is experiencing its largest backlog in its history. The agency had 35.3 millions of returns awaiting processing at the close of the 2021 filing season. According to the IRS, every paper document submitted to the IRS is processed manually.
Some forms, even if e-filed , are also reviewed by IRS employees.
With its record-low staffing, this year will prove to be the most difficult for the agency. Despite the fact that the IRS workforce is still the same size as it was in 1970, the U.S. has seen an increase in population and tax laws have become more complicated.
The agency revealed plans in March for at least 10,000 additional workers.
Lisa Greene-Lewis is a TurboTax spokesperson and CPA. She said that people should still file their Tax Day returns. “I would gather all of your documents in one location so you don’t leave anything out like 1099s and W2s.”
Important papers like the ” letter 6419″ that lists the Child Tax Credit payments that a taxpayer should receive this year, and the ” letter 6475″ for stimulus payments should be available.
Greene-Lewis has been taxing for more than 20 years. She said, “You want to report correct amounts so you don’t have to make adjustments on your refund.”
The IRS has provided useful links and information to assist last-minute filers. They stress that taxpayers must be careful to submit a complete and accurate return. It may be necessary to review a return if it contains errors or is not complete.
Keith Kahn, Delaware Society of CPAs, stated that he encourages everyone filing an electronic return.
Kahn answered the question whether CPAs would accept clients on Tax Day. It’s not uncommon for people to be turned down. For those who are able to get an appointment, Kahn said that it’s common for clients to be turned away. “Make sure you have all the information you can provide to your CPA. There is not much time to plan or ask questions.”
