Washington, D.C. (April 20, 2022) – While the 2022 individual tax filing deadline is behind us, taxpayer issues with Internal Revenue Service (IRS) is not. According to reporting from USA Today, an estimated 13.56 million taxpayers filed for extensions in 2021, with the IRS estimating that 15.2 million taxpayers would file for an extension in 2022. As of March 29th, the National Taxpayer Advocate reported that there were still 15 million unprocessed returns – a number that some think is too low to reflect the actual IRS backlog.
At the start of the 2022 tax season, the American Institute of CPAs (AICPA) joined a diverse coalition of stakeholders representing tax practitioners, businesses and taxpayers from many divergent backgrounds. The Tax Professionals United for Taxpayer Relief Coalition presented several recommendations to the IRS designed to ease the burden of a difficult filing season for taxpayers and tax practitioners by reducing unnecessary contact with the IRS.
Following months of letters, meetings and Congressional hearings, the IRS announced that it would suspend many automated notices and implement two new surge teams to address the overwhelming processing backlog. The AICPA notes that these are welcomed measures for the IRS to take but continues to encourage the IRS to do more. Implementing all of the coalition’s recommendations is an important and necessary next step to ensure that the millions of Americans who have extended their tax filing to October can do so with minimal stress and anxiety.
“The individual tax filing deadline may have passed, but the issues with the IRS are still present and very real for the millions and millions that still need to file,” said AICPA Senior Manager for Tax Policy & Advocacy, Melanie Lauridsen. “It’s unlikely that, with the measures the IRS has already announced, these issues will be resolved by the October deadline – possibly even by next tax filing season. They still have a chance to make things easier for and provide relief to millions of taxpayers – we encourage them to do that.”
Recommendations submitted to the IRS are:
Discontinue automated compliance actions until the IRS is prepared to devote the necessary resources for a timely resolution
Align requests for account holds with the time it takes the IRS to process any penalty abatement requests
Offer a reasonable cause penalty waiver, similar to the procedures of first time abate administrative waiver
Provide taxpayers with targeted relief from the underpayment and the late payment penalty for the 2020 and 2021 tax year
Contact: Veronica L. Vera