2022 04/05 The magnitude of the IRS backlog of unprocessed returns is “unprecedented,” said the National Taxpayer Advocate, Erin Collins. Since the start of the pandemic, millions of taxpayers have seen their refunds delayed. To rectify the problem, Collins wants to see the IRS’s “antiquated” system modernized, including the use of scanning technology such as 2-D barcoding used by retail stores. By reducing errors caused by manual data entry, this is expected to save “tens of millions of dollars” in labor cost. Collins has directed the IRS to work with tax return software companies to incorporate barcodes by 2023. Also suggested is the use of optical character recognition to read all paper returns.
Similar Posts
IRS announces per diem rates for business travel
2020 – 09/23 In Notice 2020-71, the IRS recently announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses…
Employers: The Social Security wage base is increasing in 2022
2021 10/25 The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $147,000 for 2022 (up from $142,800 for 2021). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Background information The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees…
Retirement Plan Maximum
2022 – 02/15 Contributing the annual maximum amount to your retirement plan is generally a good thing. Exceeding the max? Not so good. If you deferred more than $19,500 (plus $6,500 for individuals 50 and older) of your salary in 2021 to various employer plans, the IRS warns that you must withdraw the excess amount,…
Increase in 401(k) Plan Automatic Defferrals
2020 – 12/10 The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) increased the maximum amount of an employee’s compensation, from a 10% cap to a 15% cap, which can be automatically deferred to an employer’s 401(k) plan after the employee’s first plan year. In Notice 2020-86, the IRS has provided additional guidance…
Lessons Learned: Virtual Auditing
2021 – 01/21 If 2020 taught us anything, it was the necessity of being adaptable to unexpected circumstances and being flexible in solving problems across all aspects of our lives. In the accounting world, for example, COVID-19 public health restrictions necessitated significant changes in how financial statement audits were performed. When the COVID-19 restrictions came…
Extensions Due October 17th
2022 – 04/19 For taxpayers who’ve filed for an extension, highlight this date on your calendar: Monday, Oct. 17. That’s the new deadline to file your tax return with the IRS. Be aware that an extension of time to file will automatically process if taxpayers paid all or part of their taxes electronically by this…