Tax day came and went earlier this week, so if your plans for the upcoming weekend are all about chilling after the last-minute rush of tax time, you might have company.
April 18 marked the deadline for paying all federal income taxes due and filing an income tax return or filing an extension in most states.
More than 19.2 million households filed their taxes in the last full week before that deadline, which ended Friday, April 15, according to the Internal Revenue Service Figures released on Friday in this year’s registration season.
Average tax refund payouts continue to trend higher than last year when filing season lasted through May 17. Currently, the average refund amount is $3,103, an 8% increase from last year’s average of $2,873 in mid-April 2021.
According to experts, the higher payday could be a product of pandemic-related tax regulations. Learn more about checking your refund status here.
The latest numbers don’t even factor in the spate of tax returns filed in the final days leading up to the April 18th or April 19th deadline for Maine and Massachusetts taxpayers.
But Friday’s numbers reveal the details for 2022 about the final rush that occurs each tax season.
“The 19.2 million returns received in the week ended April 15 are more than the 12 million the IRS received in the first full week of April.”
The 19.2 million returns received in the week ended April 15 are more than the roughly 12 million returns the IRS received in the first full week of April.
In some context, every single one of New York City’s 8.8 million residents could file taxes twice, and that would still be timid compared to the total of 19.2 million tax returns.
The IRS expects to receive more than 160 million individual tax returns by 2022. As of April 15, 122.5 million had been received, accounting for just over three-quarters of all expected individual tax returns.
The IRS plans to receive 15.2 million renewal requests this year — a request that will buy taxpayers until Oct. 17 to file a return and no more time to pay any balance due.
Businesses and individuals spent an average of 13 hours compiling paperwork and filling out forms. the IRS estimated. When paying others to prepare their taxes, whether it’s hiring a professional or using software, the IRS states that taxpayers spend an average of $240, even though the non-business tax returns alone cost $160 for the preparation could cost. And that’s despite the free tax preparation services that are available.
“When paying others to prepare their taxes, taxpayers spend an average of $240, according to the IRS.”
The latest filing statistics are a snapshot of a challenging tax season that is about to end. The IRS came in with a backlog of tax returns and correspondence from the last year that was in the millions. This is a product of the pandemic and the amount of extra work for the agency (and also a sign of their “chronic underfunding“, according to the Biden administration).
As of April 1, the agency had a backlog of 11.4 million unprocessed paper returns from individuals and businesses, according to the IRS National Advocate for Taxpayers. That stack includes 3.3 million returns received over the past year, according to the IRS’s Consumer Protection Agency.
Between a spike in hiring and staff reassignments, IRS Commissioner Charles Rettig said the agency could start cutting the backlog by the end of 2022.
The IRS urged taxpayers to file their tax returns electronically instead of on paper to avoid getting stuck in arrears. Many people took the e-file route, as figures show.
Of the approximately 122.5 million tax returns received so far, 117.8 million were filed electronically. That is around 96% of all declarations filed this year and also 12.5% more electronically filed declarations than at the same time last year.
During tax season, lawmakers and coalitions of tax professionals urged the IRS to take steps, including halting automated notices that flagged potential problems for taxpayers. The problem was that the notices were sent out, but the potential problems had already been addressed. However, the backlog made it difficult for the IRS to know the latest.
The IRS has suspended a number of communications, but some say there is still room for more taxpayer help.
“The individual tax filing deadline may have passed, but the problems with the IRS are still there and very real for the millions and millions that have yet to be filed,” said Melanie Lauridsen, senior manager for tax policy and advocacy at the American Institute of CPAs .
“These issues are unlikely to be resolved by the October deadline with the measures the IRS has already announced — possibly even by next tax filing season,” Lauridsen said in a statement. “They still have a chance to make things easier and relieve millions of taxpayers – we encourage them to do so.”
https://www.marketwatch.com/story/the-issues-with-the-irs-are-still-present-and-very-real-millions-of-americans-are-racing-to-file-their-tax-returns-and-filing-extensions-11650648065?rss=1&siteid=rss “The problems with the IRS are still present and very real”: Millions of Americans race to file their tax returns and extend their applications