Tax refunds could be delayed in 2022. Here’s why

From Nexstar Media Wire — 

NBC4i.com — Tax season is almost here, but issues related to the pandemic could delay your refund.

The IRS announced Monday that it will begin accepting and processing 2021 tax year returns on Jan. 24, 17 days earlier than last year.

“The speed at which the IRS is filing taxes is going to be determined by not only workload volume, but COVID has been playing a nasty, nasty game,” said Tom Elder, vice president of financial planning for Compass Retirement Solutions. “This is going to be a very busy season, especially now that the window has just changed.”

Whether you file today, tomorrow, or Jan. 24, Elder said, the latest surge could cause a delay in the agency’s ability to process taxes if employees have COVID-19.

“The big issue is, is that going to be affecting the IRS? Because those are people, too,” Elder said.

Kathy Ayers, a certified public accountant, said like many industries, the accounting industry re still navigating the pandemic, too.

“We’re still working through the pandemic and all of the issues it created,” said Ayers, who has been in the finance industry for three decades.

She said the announcement from the IRS gives the agency time to work.

“The IRS has been understaffed for a very long time anyway, and to get the word out there, ya know, that we’re still processing paper returns from last year, they’re still trying to catch up. Be patient with them, be patient with us,” she said.

Ayers said the best thing tax filers can do to avoid being affected by a delay is start filing now.

“You’ll be first in line as soon as the e-file opens. Those will be hitting the IRS computers first. Get that refund quicker,” she said. “The longer you delay into February and March, the slower the processing time is just because of volume that the IRS has.”

Avoiding a paper tax return will be more than important than ever this year to avert processing delays, IRS Commissioner Chuck Rettig said. He urged taxpayers to file their returns electronically and to get their refunds by direct deposit.

It is also important for taxpayers who received a COVID-19 relief Economic Impact Payment last year or who got an advance Child Tax Credit payment to make sure they report the correct amount on their tax returns to avoid processing delays, Rettig said.

The deadline for tax returns to be filed is Monday, April 18 this year, three days later than the normal April 15 deadline for filing taxes. The later date is a result of an Emancipation Holiday in the District of Columbia. By law, Washington, D.C., holidays impact tax deadlines for everyone the same way federal holidays do.

April 18 is the deadline for filing tax returns or requesting an extension, which gives taxpayers until Oct. 17 to file their returns for 2021.

The Associated Press contributed to this report.

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