By The Internal Revenue Service (IRS) has announced that Americans can begin filing their income tax returns on Monday, Jan. 29. The deadline to pay any taxes owed or file a return is Monday, April 15, with the IRS expecting to receive approximately 128.7 million income-tax returns by that date.
This year’s tax filing season is anticipated to be closely watched as millions of Americans aim to maximize their tax refunds or minimize their tax bills amidst rising inflation rates.
In 2021, the IRS issued 105.7 million refunds, with an average payout of $3,167 per refund. As taxpayers prepare for the upcoming season, they are eagerly awaiting the potential for similar refunds.
Additionally, there are some notable developments taking place this year. One such development is the IRS’s initiative to introduce its own “direct file” tax-filing platform. This platform aims to provide taxpayers with a free alternative to popular paid tax-preparation platforms like Intuit’s TurboTax and H&R Block.
Initially, the pilot version of the IRS Direct File platform will be available in 12 states, serving hundreds of thousands of taxpayers. However, widespread availability in these states is not expected until mid-March, according to the IRS’s latest announcement.
As the new tax filing season kicks off, taxpayers should stay informed about these updates and make necessary preparations for a smooth and successful filing process.
Preparing for Tax Season: IRS Funding in the Spotlight
The IRS is busy getting ready for the upcoming tax-filing season, while lawmakers are engaged in negotiations to avoid a partial government shutdown that could begin on Jan. 19.
One key element of these negotiations involves a significant chunk of IRS funding, amounting to billions of dollars, which would be allocated to conducting more audits on wealthy taxpayers and corporations. The total amount in question is $20 billion, part of a larger $80 billion package designated for an IRS overhaul outlined by the Inflation Reduction Act, which was passed in 2022.
Amidst these discussions, IRS Commissioner Danny Werfel released a statement on Monday, expressing confidence in the positive impact of the agency’s ongoing transformation efforts. He assured taxpayers that they can expect noticeable improvements in the IRS operations during this filing season, thanks to the new funding. Werfel also underlined the commitment of IRS employees to utilizing the additional resources to enhance the taxpayer experience and streamline the process of preparing and filing taxes.
Although negotiators have made progress toward a solution that would avert a partial shutdown as of Sunday, it is crucial to recognize that there are still more hurdles to overcome before a final agreement can be reached and approved by Congress.
Presently, IRS funding is set to run through Feb. 2, offering a temporary respite for taxpayers concerned about potential disruptions due to a lapse in funds. The Treasury Department has reassured individuals that they will still be able to file their returns even if funding is temporarily halted.
In conclusion, despite ongoing discussions and uncertainties surrounding government funding, the IRS remains focused on preparing for tax season and ensuring a smooth filing process for taxpayers.
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