The IRS, under the Inflation Reduction Act, is targeting wealthy tax cheats with increased resources. Commissioner Werfel highlighted IRS improvements in answering calls and reducing return backlogs. Concerns were raised about the 20-week refund processing time for amended tax returns, especially for natural disaster victims like Hurricane Ian. Last year, the IRS had an extra week for returns, affecting refund amounts. Tax season this year may lead to lower refunds or unexpected bills, impacting consumer spending.
Tax season affects consumer realities. This year taxes are likely to be a headwind to consumption. We’ve been pointing to lower tax refunds this year (at best) or unexpected tax bills (at worst) on the horizon. Good post from a tax professional explaining in part why. ⤵️ https://t.co/oiyKgI1Nry
During the same period last year, the IRS had an extra week to process returns due to an earlier start to the tax season, which could partially explain the discrepancy in refund amounts. https://t.co/dm5kvqAADU
Did you know it takes roughly 20 weeks for the IRS to process refunds for amended tax returns? Victims of natural disasters, such as Hurricane Ian, will be amending their tax returns to deduct expenses incurred by these awful events. I urged IRS Commissioner Werfel to fix these… https://t.co/HZz45oSeC1
Werfel said the IRS has made major strides from the days when the agency left most phone calls unanswered and had a massive backlog of returns that sat unprocessed for months. https://t.co/utJYbfiEgG
Because of the Inflation Reduction Act, the IRS has more resources to go after wealthy tax cheats. I asked Commissioner Werfel in the @WaysMeansCmte how the IRS is implementing our legislation to ensure the ultra-wealthy and large corporations pay their taxes. https://t.co/DPE1wEQtCA