THJ TAX Service

Income Tax Preparation and Financial Planning

2021 TAXES

Filing Season is Set To Begin January 24, 2022

From CHRIS MORRIS - Fortune Magazine - Jan 12 - 2022

 

Long waits, delayed refunds and confusion made taxpayer interactions with the Internal Revenue Service, never the most joyous of exchanges, more frustrating than ever. And that could just be a warmup for what’s to come this year, says a new watchdog report.

Americans visited the IRS website, hoping to learn the status of their refunds, more than 630 million times last year. That left many in limbo as the tax agency fell behind in processing returns and responding to inquiries, according to the National Taxpayer Advocate, an independent organization within the IRS that came up with the findings.

“There is no way to sugarcoat the year 2021 in tax administration: From the perspective of tens of millions of taxpayers, it was horrendous,” reads the report, later adding, “2021 was the most challenging year ever for taxpayers.”

While the problems, which ranged from poor telephone service to premature collection notices due to delays in processing taxpayer responses, were aggravated by the pandemic, their origin is in budget issues. From 2010 to 2019, Congress reduced the IRS budget from $14.6 billion to $11.5 billion, and its staff dropped from 94,000 employees to 73,000, according to Congressional Budget Office estimates. 

The Biden administration attempted to increase the IRS’s budget as part of the Build Back Better program, but with that initiative stalled, the agency is seemingly facing another year of struggles, which will make it even more frustrating for taxpayers this year.

The IRS started the 2021 season behind and never caught up. That situation is set to repeat in 2022, with an even bigger backlog of old returns. Paper returns took an average of 8 months to process. (This year’s tax season begins on Jan. 24. On Dec. 23, the IRS said it still had 6 million unprocessed individual returns from 2021. (Returns filed electronically are processed faster.)

“As the IRS is preparing to begin the 2022 filing season, it is poised to carry over millions of unprocessed returns and millions of pieces of taxpayer correspondence, resulting in even longer delays for taxpayers who have been patiently waiting for far too long,” the report read.

Articles
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News and Announcements

THE 2021 TAX FILING PERIOD BEGINS ON JANUARY 24 (MONDAY) 2022.  You may file prior to that date, but the return will be mailed or held for electronic filing date January 24, 2022. The choice will be yours. 

Due to the Corona Virus (COVID-19) and its variants, THE TAX DEADLINE MAY CHANGE, WATCH FOR CHANGES. NO PENALTIES NOR INTEREST WILL BE DUE. THE SYSTEM IS MOVING INTO UNCHARTED WATERS SO EXPECT MANY CHANGES.

Jan 15, 2022: 2021 estimated payment due.

Jan 24, 2022: IRS GOES LIVE.

Jan 31, 2022: W-2 (2021) due in mail from the employer.

Feb 15, 2022: 1099-misc due for 2021

Feb 28, 2022: 1099 due IRS and Contractors for 2021

**March 15, 2022: S corp and partnerships due 2021

**April 15, 2022: Individuals & Corporation tax

                       and extension are due.  And so 

                       are the first 2022 estimated taxes.

June 15, 2022: Estimated taxes #2, Due.

Sep 15, 2022: Estimated taxes #3, Due.

                       1065 AND 1120 extensions are due.

OCT 17, 2022: INDIVIDUALS TAXES DUE that have an EXTENSION

Nov 1, 2022: END OF YEAR TAX PLANNING

                      CALL FOR AN APPOINTMENT.

DEC 31, 2022: END OF YEAR TAX MOVES.

Hours are set hourly, if you are running late,call 626.674.5236.  I may have to reset your appointment or give you a brief tax session. Drive carefully!

 

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