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IRS boss warns Americans to prepare for sluggish service in 2022 due to funding and staffing issues

Taxing season! IRS boss warns Americans to prepare for sluggish service this year due to funding and staffing issues, after Biden’s Build Back Better plan that would have sunk $80bn into agency stalls in Congress

  • Tax season begins on January 24 and runs to April 18, the US Treasury Department and IRS announced Monday 
  • IRS Commissioner Chuck Rettig said that Build Back Better would’ve including $80billion in funds to the Internal Revenue Service 
  • ‘In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs,’ Rettig said 
  • The spending bill would have also renewed the enhanced child tax credit payments but for now, the payments remain in flux and could affect filings










The IRS is warning taxpayers that they expect possibly slower service than usual and some experts are blaming the inability to pass President Joe Biden‘s Build Back Better social spending agenda. 

Tax season begins on January 24 and runs to April 18, the US Treasury Department and IRS announced Monday. 

IRS Commissioner Chuck Rettig said that Build Back Better would’ve including $80billion in funds to the Internal Revenue Service to budget for more staff and better technology to stop tax cheats and better customer service.     

‘In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs. This is frustrating for taxpayers, for IRS employees and for me,’ said Rettig.

The spending bill would have also renewed the enhanced child tax credit payments but for now, the payments remain in flux and could affect filings and refunds.

The Internal Revenue Service headquarters in Washington DC is preparing for a sluggish service year

The Internal Revenue Service headquarters in Washington DC is preparing for a sluggish service year

IRS Commissioner Chuck Rettig said that President Biden's Build Back Better would've including $80billion in funds to the Internal Revenue Service to budget for more staff and better technology to stop tax cheats and better customer service

IRS Commissioner Chuck Rettig said that President Biden’s Build Back Better would’ve including $80billion in funds to the Internal Revenue Service to budget for more staff and better technology to stop tax cheats and better customer service

'In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs. This is frustrating for taxpayers, for IRS employees and for me,' said  Internal Revenue Service Commissioner Chuck Rettig (pictured)

‘In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs. This is frustrating for taxpayers, for IRS employees and for me,’ said  Internal Revenue Service Commissioner Chuck Rettig (pictured) 

The IRS said that the average refund given out on 2020 tax returns came out to $2,815. 

The IRS is hoping to avoid processing delays or taxpayer errors on returns to get refunds to people in the traditional 21-day turnaround time.      

‘Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop these past several months to prepare,’ Rettig added. ‘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.’

Officials recommend filing electronically via direct deposit to avoid delays and to make sure all numbers on your returns are accurate.  

The IRS is also mailing letters on amounts it paid households for those child tax credits and the third round of pandemic-era stimulus checks. 

The IRS is hoping to avoid processing delays or taxpayer errors on returns to get refunds to people in the traditional 21-day turnaround time

The IRS is hoping to avoid processing delays or taxpayer errors on returns to get refunds to people in the traditional 21-day turnaround time

Officials recommend filing electronically via direct deposit to avoid delays and to make sure all numbers on your returns are accurate

Officials recommend filing electronically via direct deposit to avoid delays and to make sure all numbers on your returns are accurate

The service is still making its way through six million backlogged 2020 returns due to errors and ‘special handling.’ 

Usually by the time a filing season comes around, that backlog is well below a million.   

The IRS adds that taxpayers can file for an extension through October 18 on 2021 tax returns and the IRS can set up installment plans after that poin.  

Las year’s payment deadline got extended well past the usual April 15 date to May 17 to ease the burden on taxpayers and tax preparers after the passage of the American Rescue Plan.  

Treasury and IRS officials said Monday that no plan is set up to extend any filing deadlines this year.   

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