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The backlog of tax filing delays may force the IRS to pay interest to delinquent applicants.

https://sputniknews.com/20220510/backlog-of-delayed-tax-returns-may-force-irs-to-pay-billions-in-interest-to-past-due-applicants-1095386604.html

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We, irs, tax returns, refunds

The Internal Revenue Service (IRS) is facing a significant staff shortage and funding shortage after a 23% reduction in government budgets from 2010.

The IRS has accumulated millions of tax returns that can be overdue, forcing the Treasury to pay an additional fee for delays.

The agency has 45 days to process the application and the delay involves payment of interest. Starting April 1, individual filers’ interest rates related to the Federal Reserve’s benchmark interest rates have been raised from 3% to 4%.

According to The Wall Street JournalThe IRS has 9.6 million unprocessed returns, all of which can lead to significant budget tightness.

According to a recent report from the Government Accountability Office, the IRS has returned interest of approximately $ 14 million in the past fiscal year. The fourth part, about $ 3 million, was paid in 2021 due to a technical problem caused by a pandemic.

The agency has not identified which part of the unprocessed declaration missed the 45-day delay, but many were not received until 2022. In 2021, taxpayers waited for a refund for nine months.

“Every year”: Biden, unlike other presidents, boasts an annual tax return release

An additional reason leading to the delay is the extension of the application period introduced during the 2020 and 2021 pandemics. The refund deadline was associated with the original tax date, so the IRS has even less time to process returns before the deadline. ..

Additional staff recruitment was planned for US President Joe Biden’s $ 1.75 trillion Build Back Better bill. This included spending $ 80 billion on the IRS. It predicts the recruitment of 89,000 additional IRS agents, which will result in 1.2 million additional audits each year.



https://sputniknews.com/20220510/backlog-of-delayed-tax-returns-may-force-irs-to-pay-billions-in-interest-to-past-due-applicants-1095386604.html The backlog of tax filing delays may force the IRS to pay interest to delinquent applicants.

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