Can you believe it?  We are allowed to file our taxes starting 24 January. But, more importantly, the official tax season will end on 18 April (19 April in Massachusetts and Maine). Not May, not July, not October.  For the first time since the pandemic began.

Of course, that does not mean all is well. After all, there are still unprocessed 2020 tax returns.  Not like the 15 million unprocessed 2019 returns that obtained at the start of last year’s tax season, but still a pretty substantial backlog.

There are 6.3 million income tax returns yet to be processed from last year.  Not to mention 2.3 million amended tax returns.  (Yes, M&M, that’s why the IRS still thinks you owe them money.  I’m certain you are part of this unprocessed bunch of returns.)  And, then, there’s the returns that have problems (called special handling).  That backlog has now been chopped from 9.8 million (May 2021) down to 42,000!

But, then, there’s all this extra work.  Like sending letters to every taxpayer that received the Third Economic Stimulus Payment ($1400 maximum) [Letter 6475] and the advanced Child Tax Credit [Letter 6419].)

And, let us also not forget that Congress can decide to alter the law retroactively. Like they did last year for unemployment compensation.  Which meant the IRS either had to accept amended returns from everyone- or, as it did,  elected to recompute all those tax returns they had received without receiving an amended tax return.

Which is why the IRS isn’t processing any child or earned income credit returns until 15 February- because of past fiascos with earned income credits and the child tax credit.  (Congress passed the PATH Act a few years ago that made this delayed processing a law.)

Oh- and if you live in Colorado, your tax season ends on 15 May, due to the fires and snow storms.

Did you get your book describing the tax laws this year?

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