The year 2022 began with a rocky start when the Internal Revenue Service urged taxpayers to take additional precautions when filing their returns, adding that accuracy in reporting is important now more than ever.
Earlier in the year, the IRS predicted more than 160 million individual tax returns would be filed for the 2021 tax year, with the majority being filed before the April 18 deadline. This urgency has come up due to the recent critical tax law changes that occurred in 2021, as well as financial challenges related to the COVID-19 pandemic.
IRS Commissioner Chuck Rettig said in the press release that IRS employees are “working hard to deliver a successful 2022 tax season,” and they are “facing enormous challenges related to the pandemic.”
With stress arising from the changes in tax rules, the higher risk of audits has prompted more Americans to seek out professional help, according to Essam Abdullah, CEO of Taxrise Inc. a tax resolution company based in Southern California.
“We’ve seen substantial growth in our business over the past few years, and the need for our services is beginning to match that growth,” Abdullah said. “2021 came with a lot of uncertainty for the average person, and with the changes in tax laws and the pandemic considered, I can see why more people are seeking the help of professionals.”
According to TaxRise, the United States is approaching more than $280 billion in uncollected taxes.
As a result, the Internal Revenue Service (IRS) has had to increase its efforts to collect unpaid back taxes from individuals and businesses who still have balances due.
IRS Commissioner Rettig has also said there are important steps Americans can take to help avoid potential processing delays and get their tax refund as quickly as possible. He adds avoiding paper tax returns and opting for electronic returns could help speed up the filing process.
National Taxpayer Advocate Erin M. Collins released her 2021 Annual Report to Congress, saying 2021 was the “most challenging year taxpayers and tax professionals have ever experienced.”
According to the report, tens of millions of American taxpayers experienced delays in the processing of their returns, and about 77 percent of individual taxpayers receiving refunds experienced processing delays that translated directly into refund delays.
“There is no way to sugarcoat the year 2021 in tax administration,” Collins wrote in the report. “The year 2021 provided no shortage of taxpayer problems.”
Now, in the midst of the 2022 tax season, the IRS has been clear that this year will likely see many of the same issues.
That’s why TaxRise offers a multitude of services, including help with unfiled taxes, tax consultations, tax resolution, and back taxes. According to testimony on TaxRise, a man named “Charles N.” went to a local CPA to file his yearly taxes, only to be targeted for an IRS audit. Allegedly, his CPA misfiled multiple elements of his tax return, resulting in a large tax bill of $206,000.
With the help of the experts at Taxrise, this bill was settled for a fraction of the cost, going from Charles owing $206,000 to only $650.
“I feel incredibly blessed and humbled to have been given this second chance,” Charles said in his testimony. “I’m thankful to be back in a position where I don’t fear bankruptcy or debt collectors and instead I can focus on my work and family.”
Abdullah said that he and his team have prepared for this tax season and are dedicated to ensuring their clients don’t have to deal with the same struggles that many experienced in 2021.
“We want to help ease the burden for taxpayers this year and help eliminate some of that uncertainty,” Abdullah said. “That’s ultimately what we aim to do.”
