This tax season will be a year-long affair. Discover the challenges and where you can find support.
The IRS is warning individuals and businesses that a “frustrating” 2022 awaits taxpayers and tax preparers. This issue may be significant for many small businesses that don’t have the accounting personnel necessary to manage complicated business returns. Fortunately, quality, affordable accounting help is easily accessible, and it’s a resource that many overlook.
In an open letter, IRS Commissioner Chuck Rettig stated that juggling new responsibilities, such as the expanded Child Tax Credit, sending pandemic aid payments, worker shortages caused by the COVID-19 pandemic and years of budget cuts, created a backlog of last year’s returns several times greater than usual.
According to The Washington Post, “Typically, IRS officials enter filing season with an unaddressed backlog of roughly 1 million returns. The IRS website says that as of Dec. 23, 2021, it still had 6 million unprocessed individual returns, and as of the start of this month, it still had more than 2 million unprocessed amended tax returns, a separate category.”
According to multiple reports, the worker shortage also dramatically impacts the IRS’s customer service capabilities. From Jan. 1 through May 17, 2021, the IRS received more than 145 million calls from taxpayers with questions, more than four times higher than in an average year. Over that same period, the IRS had one employee for every 16,000 calls. The agency has already stated that it will struggle to handle the volume of calls it receives in 2022.
In other words, do not expect a quick call to the IRS if you have any questions about your return. In fact, it seems that you would be fortunate if someone returned your call at all. Additionally, many taxpayers may feel that the filing logjam and worker shortage means less attention on their returns. However, nothing could be further from the truth. While there may be a delay in tax filings reviews, that simply means any mistakes will take longer to be caught. So, unless small business owners still want to deal with this year's taxes as the calendar turns to 2023, they must ensure their returns are correct.
“As a small-business owner myself, I know how complicated and frustrating taxes can be,” said Elizabeth Eiss, Founder and CEO of the talent curation and freelance recruiting platform ResultsResourcing. “Unfortunately, the tax preparation burden is often harder on small businesses that may lack the necessary accounting personnel to handle the complex federal, state, and local taxes requirements, which frequently change from year to year.”
Even worse, many small business owners make the task much more difficult with poor record-keeping, which often results in underpaid taxes.
“At ResultsResourcing, we have a database of accounting, bookkeeping, and tax prep freelance professionals that can help your small businesses keep its financial records organized year-long and provide support throughout the 2022 tax grind,” said Eiss. “Our process is designed to take the guesswork out of hiring. We narrow down the applicants that are best-matched to your job and then personally interview the top qualifiers. The client (you) speaks to and makes the final selection from the top three candidates presented, ensuring that each position is filled with the best-matched service provider.”
Don’t fall behind in the year-long 2022 tax slog. Reach out to ResultsResourcing to find the freelancers you need for accounting, bookkeeping, and tax preparation assistance this tax season and throughout the year.
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