Taxpayers and return preparers should gird for a challenging and frustrating tax season as many of the processing delays and customer-service shortages that have plagued the Internal Revenue Service for years will persist this year, Treasury officials told reporters. The officials said funding cuts and staffing shortages due to the ongoing health crisis are causing the problems.
“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,” IRS Commissioner Chuck Rettig said in a statement Monday. “Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year.”
By law, the IRS must hold refunds until at least mid-February for taxpayers claiming the earned-income tax credit or the additional child tax credit that Congress enacted last year -- so that the agency can conduct additional fraud checks.
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