Ready or not, the 2022 tax season is officially here and it’s bringing a TON of questions with it. Between COVID-19 and a new administration in the White House, we’re looking at lots of changes. We expect some confusion and even some frustration as we move through tax season this year - that’s why we’ve put together answers to what we anticipate to be some of your most frequently asked questions.
Where is my 2020 Return?
Let’s start with the obvious question. According to the IRS, 9 million individuals are still missing their refunds from 2020 - and while the IRS typically starts each year with a backlog of only one million pieces of mail, this year their backlog is estimated to be over six million.
The last refunds sent out were back in November. Unfortunately, the IRS is currently “in crisis” and backlogged with no real answers as to when they’ll have all of the refunds distributed.
In the meantime, you can check the IRS website to see the status of your refund. You can also call, but we don’t recommend that since you’re likely to be on hold for hours. If your return shows as “accepted” and your refund has been sent to you but you have yet to receive it, consider contacting your local representative for assistance tracking down the funds.
Should I File My 2021 Taxes if I Don’t Have My 2020 Refund Yet?
Yes! You can and absolutely should file your 2021 return regardless of your 2020 status. If you don’t file your taxes on time or request an extension, the IRS may charge you penalties and interest on any amount owed to them.
When Are Taxes Due This Year?
So far, the IRS has not granted a blanket extension. Instead, you’ll need to file your personal return by April 18th, 2022. Some other important dates for the 2022 tax season include:
- January 18: Final 2021 4th Quarter payments are due for businesses
- January 24: The IRS will begin individual tax return processing
- March 15: Partnership and S-Corp returns are due OR an extension needs to be filed
- April 18: Personal and C-Corp tax returns are due OR an extension needs to be filed
- September 15: Returns are due for Partnerships and S-Corps that filed an extension
- October 17: Returns are due for those who filed a Personal or C-Corp extension
Keep an eye out for any changes in this schedule due to COVID-19 or other factors.
How Can I Avoid Delays in My Return?
- Have all of your information organized and complete
- Carefully review your return for any mistakes or discrepancies prior to filing
- File as early as possible
- File electronically
- Select direct deposit for your return instead of requesting a paper check.
Essentially, the easier you make it on the IRS, the more likely you are to get your refund in a timely fashion.
Businesses need to have all of their financial documents in order and handed over to their bookkeeper as early as possible. The sooner your financial team has access to these documents, the earlier your bookkeeper can get everything over to your accountant.
Most accountants are currently either at capacity or beyond it and won’t be taking new clients on at all or will stop taking new clients on very soon. If you’re looking for a new bookkeeper or tax professional, the time to reach out and get working on your finances is NOW. Working with the IRS is kind of like going to Disney World - get in line early and be ready to wait.
If you have any other questions about the 2022 tax season, please reach out to us. We’d rather you came to us first instead of consulting Google and getting the wrong information. You can set up a call here.