IRS has been primed for a better 2023 tax season after facing a challenging previous year but may take time for improvements to take effect.
IRS has been primed for a better 2023 tax season. (Photo: CNBC)
Starting The 2023 Filing Season at a Stronger Pace
The National Taxpayer Advocate released its annual report to Congress discussing last year’s biggest hurdles with the IRS. This includes recommendations on fixes.
Erin Collins of NTA expressed that taxpayers experienced “misery” in 2022 said CNBC. The good news states that the IRS made notable progress in reducing unprocessed returns and correspondence.
2022 gave the IRS problems as they had an unprocessed paper backlog of 4.7 million original individual returns, 3.2 million original business returns, and 3.6 million amended returns. This status gave the IRS a chance to improve as they start the 2023 filing season in a stronger position.
IRS has been primed for a better 2023 tax season. (Photo: CNBC)
IRS Starts 2023 Tax Season with Reduced Paper Backlog
IRS has been racked up with backlogs as they couldn’t tackle current-year paper-filed returns until after the filing season ended. With the reduction of inventory in 2022, there is a great chance that the agency can now process returns during the filing season.
One of the suggested solutions includes an increase in IRS funding to boost staffing. This will greatly helped managing these concerns. But the improvements will not happen automatically as new workers needs specialized trainings to cope up to their new environment.
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