Reports showed that the Internal Revenue Service still had millions of unprocessed returns and correspondence from past years at the start of tax season in late January. With such a large backlog to deal with, the IRS didn't seem to have much hope for a smooth tax season.
However, it hasn't been a complete disaster, as the IRS has already issued over 45 million tax refunds totaling roughly $152 billion, much to the astonishment of some analysts. And, of course, there's the all-important average refund payment. So far, it has a total of $3,352, which is $537 more than the previous year's total of $2,815.
However, with the tax season deadline still about a month away, that average amount might change significantly.
Concerning the millions of unprocessed returns and correspondence, it appears that the IRS is making significant efforts to reduce the backlog. IRS Commissioner Chuck Rettig told the House Ways and Means Committee late last week that he expects the agency to clear its backlog "absolutely before December."
"As of today, barring any unforeseen circumstances, if the world stays as it is today, we will be what we call 'healthy' by the end of calendar year 2022, and enter the 2023 filing season with normal inventories," he said.
Rettig's remarks come after the IRS announced plans to hire 5,000 new employees in the coming months and another 5,000 next year. The agency's processing hubs in Austin, Texas, Kansas City, Missouri, and Ogden, Utah will host job fairs on Mar. 23 and 30.
"It's an exciting time to work for the Internal Revenue Service," IRS Taxpayer Experience Officer and Wage and Investment Commissioner Ken Corbin said in a statement.
"The IRS has opportunities for almost every profession, starting with these entry level positions. Starting here today can guide you to your future career, like it has done for me starting in high school," he continued.
In addition to the new hires, the agency will reassign 700 employees from its processing centers in Utah, Missouri, and Texas to help clear inventory.
"IRS employees have been working tirelessly to process backlogged returns and taxpayer correspondence," Rettig said in a recent statement. "To ensure inventory is back to a healthy level for next filing season, we are leaving no stone unturned-taking an all hands on deck approach to ensure as many employees as possible are dedicating time to return processing."
