IRS calls for ‘extra caution’ this year, boosting business for TaxRise, others
Although last year was “the toughest year taxpayers and tax professionals have ever seen,” according to the Taxpayer Advocate Service, 2022 could bring even more problems for Americans trying to file their taxes. taxes.
The Internal Revenue Service started this year’s tax season by urging taxpayers to take “extra precautions” when filing their returns. Taxpayers should “take extra care” in 2022 due to several critical tax law changes that took place in 2021 and ongoing pandemic-related challenges, IRS Commissioner Chuck Rettig said in the press release. .
The combination of more complicated tax rules and increased risk of audits is motivating more people to seek help with their tax return, both from professional and community services, said Essam Abdullah, CEO of TaxRise Inc., a Southern California-based tax resolution firm.
“While we have seen steady growth over the past few years, we have certainly seen an increase in interest in our services this tax season,” Abdullah said. “Last year has been really tough for a lot of people. They’re looking for a way to reduce stress while taking care of business, and we’re helping them do that.
Getting professional help with taxes should be a priority this year for small business owners, the self-employed or those who have invested, but especially in cryptocurrencies, Consumer Reports said.
Diana Sabari, who runs a tax preparation franchise in Manhattan, said in the article that she’s seeing more requests for help because her clients are “so scared.” It becomes chaos, back and forth with the taxman. And they usually end up paying money they didn’t need.
As EconoTimes reported in February, the IRS’ own annual report revealed many problems over the past year, including
Many taxpayers having difficulty reaching the IRS
Tax returns have been months late
About a quarter of refunds were only sent in 2022
Collection notices were sent even after payment of the tax due
The IRS and the White House claim to be working on solutions to the agency’s problems. President Joe Biden wants to add $80 billion to the agency’s funding, and the tax agency announced plans in March 2022 to hire 10,000 new auditors to handle a huge backlog of taxpayer audits — no experience required. .
However, there are other reasons for the IRS’ misfortunes. While some of the blame can be attributed to the pandemic, there are also years of underfunding, outdated computer systems and a shrinking workforce.
Of those filing taxes, many have experienced big changes in their lives over the past few years, said Abdullah of TaxRise Inc. That could mean receiving unemployment for the first time, working multiple jobs, or receiving a stimulus check from the government.
Millions of Americans face greater confusion and uncertainty about their tax filings than ever before, Abdullah said.
“We heard of a few people who turned to free or low-cost options for tax relief and ended up coming to us because the community services weren’t enough for their needs,” Abdullah said. “Part of the growing popularity of services like TaxRise is that we can help with a burden – and we do a very good job of solving tax problems.”
That’s what happened to the Bronx couple interviewed by Consumer Reports. They visited a “low-cost pop-up shop in their neighborhood” with a tax preparer who, in the end, “didn’t inspire much confidence.”
“We are not going to hire an old body that has just been trained for the season,” Tashiana Diaz said in the article. “This year, we have to make sure that the person we hire knows their job.”
This article does not necessarily reflect the views of the editors or management of EconoTimes