IRS News IRS Sends Erroneous Balance Due Notices July 27, 2022
The IRS is aware that some payments made for 2021 tax returns have not been correctly applied to joint taxpayer accounts, and these taxpayers are mistakenly receiving balance due notices (CP-14) or notices. Generally, these are payments made by the spouse (second taxpayer listed) on a married filing jointly return submitted through their Online Account.
No action is required at this time.
Interest Rates Increase August 15, 2022
The Internal Revenue Service announced that interest rates will increase for the calendar quarter beginning October 1, 2022. For individuals, the rate for underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1.
Delayed Refunds August 19, 2022
All timely filed paper and electronic individual returns received prior to January 2022 have been processed if the return had no errors or did not require further review.
As of August 12, 2022, the IRS had 9.3 million unprocessed individual returns received in calendar year 2022. These include tax year 2021 returns and late filed tax year 2020 and prior returns.
Of these, 1.7 million returns will require a correction or other special handling, including 7.6 million paper returns waiting to be reviewed and processed. Typically, the IRS processes tax refunds in 21 days or less. Any tax return requiring special handling (including paper returns mailed to the IRS) could take more than 120 days. The IRS will send taxpayers a written explanation if they make a correction that includes any of the following credits: ✓ Earned Income Credit ✓ Child Tax Credit / Additional Child Tax Credit ✓ Recovery Rebate Credit
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