With the 2022 tax season in full swing, millions of American taxpayers are now bracing for massive delays in receiving their tax refunds.

On top of that concerning issue, the Internal Revenue Service (IRS) is sending out automated notices that are confusing and distressing taxpayers. As reported by CNBC, “some taxpayers who sent last year’s return and paid their balance have received a CP80 notice saying they may lose their credit for payment if they don’t file their 2020 tax return.”

Backlog at the IRS

The IRS, though, has confirmed that many of these notices were sent out due to a sizable backlog of unprocessed tax returns. Currently, the IRS has 6.7 million unprocessed individual tax returns and 2.6 million unprocessed amended individual returns. The computer-generated notice directly tells the taxpayer to refile, but the agency’s website now says not to resubmit past returns.

“We have already decided to suspend notices in situations where we have credited taxpayers for payments but have no record of the tax return being filed,” the IRS noted in a statement. “In many situations, the tax return may be part of our current paper tax inventory and simply hasn’t been processed,” it continued.

However, financial experts advise that taxpayers will want to double-check if the credit details are accurate and that there are, in fact, records of filing the tax return along with proof of payment.

A Tough Tax Season

National Taxpayer Advocate Erin Collins has issued an alarming report to Congress that says she is “deeply concerned about the upcoming filing season.” The remaining pile of tax returns is due to the “most challenging year taxpayers and tax professionals have ever experienced,” she continued, adding that the processing delays could be “as bad, and potentially worse” this year.

Further slowing down the processing of returns is the fact that the IRS needs to double-check any reporting mistakes associated with the enhanced child tax credit and the third stimulus checks. IRS Commissioner Chuck Rettig has already urged all taxpayers to take special care and confirm their numbers on their respective tax returns. Rettig also has made the decision to temporarily reassign about 1,200 employees to the frontlines to assist with the backlogs.

“This is an all-hands-on-deck situation to help people as quickly as possible and reduce the stress on employees who have been and continue to face unprecedented levels of inventory to be worked,” he wrote in an email to employees.

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.