The individual tax filing season will open on January 24 when the IRS begins accepting returns the agency announced in News Release IR-2022-08.[1]  The release also discusses a number of other issues related to the upcoming filing season.

Opening of the 2022 Filing Season

The Notice begins with the announcement of the date the IRS will begin accepting 2021 tax returns:

The Internal Revenue Service announced that the nation’s tax season will start on Monday, January 24, 2022, when the tax agency will begin accepting and processing 2021 tax year returns.

The January 24 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly. Updated programming helps ensure that eligible people can claim the proper amount of the Child Tax Credit after comparing their 2021 advance credits and claim any remaining stimulus money as a Recovery Rebate Credit when they file their 2021 tax return.[2]

The notice explains the reasons for the annual shutdowns and the delay in accepting tax returns after a year ends:

“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop these past several months to prepare,” said IRS Commissioner Chuck Rettig. “The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays. Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year. And we urge extra attention to those who received an Economic Impact Payment or an advance Child Tax Credit last year. People should make sure they report the correct amount on their tax return to avoid delays.”[3]

Update on 2020 Returns Processing Backlog

The News Release also provided an update on the IRS return processing backlog.  The IRS had previously stated in December that all returns filed prior to April 2021 had been processed by the agency. The new release does not move that date:

The IRS continues to reduce the inventory of prior-year individual tax returns that have not been fully processed. As of December 3, 2021, the IRS has processed nearly 169 million tax returns. All paper and electronic individual 2020 refund returns received prior to April 2021 have been processed if the return had no errors or did not require further review.[4]

The IRS goes on to tell taxpayers that even if their 2020 return has not been fully processed, they can still file their 2021 return:

Taxpayers generally will not need to wait for their 2020 return to be fully processed to file their 2021 tax returns and can file when they are ready.[5]

While the statement is correct in the sense that taxpayers can file 2021 without 2020 being fully processed, advisers may find that if taxpayers had requested some or all of their 2020 refund be applied to the 2021 return, the taxpayers may end up with correspondence from the IRS adjusting their reported payments of tax on the 2021 return.  Given the problems advisers are running into communicating with the IRS, prudence may suggest not rushing to file returns where such overpayments were applied to 2021 if the prior return has not completed processing.

Expected Time Period from Filing a 2021 Return to Receiving a Refund

The news release gives the following information regarding when taxpayers can expect to receive their refund after filing a return:

Overall, the IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit and there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically. To avoid delays in processing, people should avoid filing paper returns wherever possible.

By law, the IRS cannot issue a refund involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February, though eligible people may file their returns beginning on January 24. The law provides this additional time to help the IRS stop fraudulent refunds from being issued.[6]

However, the IRS goes on to caution that some taxpayers will not see their refund within the above time frames:

Some returns, filed electronically or on paper, may need manual review, which delays the processing, if our systems detect a possible error or missing information, or there is suspected identity theft or fraud. Some of these situations require us to correspond with taxpayers, but some do not. This work does require special handling by an IRS employee so, in these instances, it may take the IRS more than the normal 21 days to issue any related refund. In those cases where IRS is able to correct the return without corresponding, the IRS will send an explanation to the taxpayer.

Advance Child Tax Credit and Third Economic Impact Payment

The news release provides information on how taxpayers can obtain information on the amounts the IRS reports they have received for the advance Child Tax Credit and Third Economic Impact Payment.

With regard to the advance Child Tax Credit, the IRS provides the following information:

The IRS started sending Letter 6419, 2021 advance Child Tax Credit, in late December 2021 and continues to do so into January. The letter contains important information that can help ensure the return is accurate. People who received the advance CTC payments can also check the amount of the payments they received by using the CTC Update Portal[7] available on IRS.gov.

Eligible taxpayers who received advance Child Tax Credit payments should file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive advance Child Tax Credit payments can claim the full credit by filing a tax return.[8]

The release also gives information on the Third Economic Impact Payment:

The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to individuals who received a third payment in 2021 in late January. While most eligible people already received their stimulus payments, this letter will help individuals determine if they are eligible to claim the Recovery Rebate Credit for missing stimulus payments. If so, they must file a 2021 tax return to claim their remaining stimulus amount. People can also use IRS online account[9] to view their Economic Impact Payment amounts.[10]

[1] “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline,” IRS News Release IR-2022-08, January 10, 2022, https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline (retrieved January 13, 2022)

[2] “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline,” IRS News Release IR-2022-08, January 10, 2022

[3] “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline,” IRS News Release IR-2022-08, January 10, 2022

[4] “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline,” IRS News Release IR-2022-08, January 10, 2022

[5] “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline,” IRS News Release IR-2022-08, January 10, 2022

[6] “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline,” IRS News Release IR-2022-08, January 10, 2022

[7] https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

[8] “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline,” IRS News Release IR-2022-08, January 10, 2022

[9] https://www.irs.gov/payments/your-online-account

[10] “2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline,” IRS News Release IR-2022-08, January 10, 2022