Help for taxpayers and tax pros: Tax season alerts and planning ahead for 2023

Taxpayers face a number of issues due to critical tax law changes that took place in 2021 and ongoing challenges related to the pandemic. The IRS continues to share updated information for people now filing their 2021tax returns and those planning for the 2022 return they will file next year as well as anyone who has previous year tax returns awaiting processing by the IRS.

This page will be updated with special alerts designed to help anyone whether they are now preparing their tax return or are awaiting processing of a return or refund and the latest updates on IRS letters, or notices. Newer updates will be placed at the top of this page; the IRS will also provide critical updates through social media.

Updates

May 13 update

Update on 2020 information returns

The IRS provided a statement about questions involving processing of 2020 information returns. Information returns are not tax returns, and they are documents submitted to the IRS by third-party payors, not taxpayers. Taxpayers or payers have not been -- and will not be  --  subject to penalties resulting from this action.

2022 filing season update

The IRS continues to process tax returns and deliver refunds a rapid pace for the current filing season. As of the week ending May 6, the IRS has issued more than 94 million refunds worth over $285 billion. The average refund is $3,025.

May 6 update

IRS provides guidance for residents of Puerto Rico to claim the Child Tax Credit

The Internal Revenue Service has issued guidance for certain individuals in Puerto Rico on how to file and claim the Child Tax Credit payments that they are entitled to receive under the American Rescue Plan Act.

April 4 update

Temporary update to U.S. residency certification application process

The IRS is temporarily changing its procedures for Form 8802, application for U.S. residency certification, for a two-year period. More information can be found at Temporary change in policy with respect to applications for U.S. residency certifications for a two-year period.

March 22 update

Electronically filed return rejected for a missing Form 8962

Tax year 2021 electronically filed tax returns will be rejected if the taxpayer is required to reconcile advance payments of the premium tax credit on Form 8962, Premium Tax Credit, but does not attach the form to the tax return. See How to correct an electronically filed return rejected for a missing Form 8962 for more information.

March 16 update

IRS Information Technology looking for over 200 technologists

As part of a larger hiring effort, the IRS plans to hire more than 200 technologists to help the agency further modernize its technology.

The IRS is offering entry-level positions as well as career opportunities for experienced and supervisory IT specialists in the fields of system development, architecture, engineering, cybersecurity, IT operations, network services and customer support. In addition, the IRS is seeking applicants with knowledge of cloud, zero trust security, low/no-code enterprise platforms, artificial intelligence and machine learning, or NoSQL database among other modern technologies. To learn more about IRS IT modernization and recent accomplishments, visit IRS.gov/modernization. For more information, see the news release.

March 15 update

IRS alert for some farming and fishing businesses: The IRS is aware of a third-party software issue affecting qualifying farmers and fishermen attempting to electronically file Forms 7203. Due to these challenges, the Treasury Department and the IRS issued Notice 2022-33PDF, providing penalty relief for qualifying farmers and fishermen filing Forms 7203 if they electronically file their 2021 tax return and pay in full any tax due by April 18, 2022, or by April 19, 2022, for those qualifying farmers and fishermen who live in Maine or Massachusetts. Farmers and fishermen who filed their returns by the March 1 deadline are unaffected by this, as explained in this news release.

March 10 update

IRS announces new positions

The IRS announced that to help serve taxpayers during this challenging tax season, it is hiring more than 5,000 positions in its service processing centers located in Austin, Texas; Kansas City, Missouri; and Ogden, Utah. The IRS is hosting virtual and in person hiring events where they will review resumes and extend job offers to eligible applicants on the spot.

New hires may expect to begin work within 30-45 days of their job offer. Visit IRS events for how to sign up for Virtual and In-person hiring events.

IRS unveils voice and chat bots

The IRS unveils voice and chat bots to assist taxpayers with simple collection questions and tasks, providing faster service and cutting wait time. The IRS has deployed voice and chat bots in English and Spanish for phone lines that assist taxpayers with tax payments issues or understanding an IRS notice they may have received. The bots are now available and can help taxpayers with: How to make One-Time Payments; Answers to Frequently Asked Questions; and Collection Notice Clarification. Bots that can handle more complex chores are coming later this year. Learn more by consulting the news release.

February 16 update

IRS provides details on relief for Schedule K-2 and K-3 reporting: The IRS issued a news release and new frequently asked questions (FAQs) providing both general information and more details on the certain domestic partnerships and S corporations who qualify for the exception to 2021 reporting. For 2021, these qualifying domestic partnerships and S corporations will not have to file the new schedules. We are taking this step in response to feedback we received from the tax community and our stakeholders. The IRS will provide full details of this relief soon.

February 14 update

IRS suspends more than a dozen automated notices, including collection issues: As part of ongoing efforts to provide additional help for people during this period, the IRS has suspended automated collection notices normally issued when a taxpayer owes additional tax or has no record of filing a tax return. Note that many other IRS notices are statutorily required to be issued within a certain timeframe to be legally valid. The IRS encourages those who have a filing requirement and have yet to file a prior year tax return or to pay any tax due to promptly do so as interest and penalties will continue to accrue. Visit IRS.gov for payment options. For more information on suspended notices, see IR-2022-31, IRS continues work to help taxpayers; suspends mailing of additional letters.

General information for the 2022 tax season

April 18 tax deadline: Taxpayers who owe and missed the April 18 filing deadline should file now to limit penalties and interest. While taxpayers due a refund receive no penalty for filing late, those who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest.

Families who don't owe taxes to the IRS can still file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any point until April 15, 2025, without any penalty. This year also marks the first time in history that many families with children in Puerto Rico will be eligible to claim the Child Tax Credit, which has been expanded to provide up to $3,600 per child.

Advance Child Tax Credit payments: People who received advance Child Tax Credit payments in 2021 need to ensure the amounts they've received are entered correctly on the 2021 tax return. Incorrect entries when reporting these payments mean the IRS will need to further review the tax return, creating an extensive delay. People can check the amount of their payments in their Online Account available on IRS.gov. The IRS also mailed letters to recipients about the advance Child Tax Credit payment amount. However, a limited group of taxpayers may receive a letter with the incorrect amount listed. More information about who might have received an incorrect letter can be found on our IRS Statement — Child Tax Credit Letters page.

Recovery Rebate Credit (also called stimulus payments or Economic Impact Payments):  All third-round Economic Impact Payments have been issued. People may claim any remaining stimulus payment they're entitled to on their 2021 tax return as part of the 2021 Recovery Rebate Credit. People who are filing to get any remaining payment should ensure the amounts they've received are entered correctly on the tax return. Incorrect entries when reporting these payments mean the IRS will need to further review the tax return, creating an extensive delay. The IRS is mailing letters to payment recipients about the stimulus payments amounts they received. People can also check the amount of their payments in their Online Account available on IRS.gov.

Filing if your 2020 tax return is still being processed: For people whose tax returns from 2020 have not yet been processed, they should still file their 2021 tax returns. Those filing electronically in this group need their Adjusted Gross Income, or AGI, from their most recent tax return when they file electronically. For those waiting on their 2020 tax return to be processed, make sure to enter $0 (zero dollars) for last year's AGI on the 2021 tax return. Visit Validating Your Electronically Filed Tax Return for more details.

Status of IRS tax return inventory from prior years: COVID-19 continues to cause delays in the processing of some prior year tax returns and amended returns. Please visit our IRS Operations During COVID-19: Mission-critical functions continue page to find out the current status of the IRS inventory from prior years.

Form 1099-INT: Taxpayers should report interest from unemployment refunds, other IRS payments as 2021 income. The IRS reminded taxpayers who received an interest payment for a tax-related issue in 2021 need to report it as income on their tax return.

Under the law, interest income is taxable, and that includes payments from the IRS. During 2021, several groups of people could fall into this category. This includes people who received interest payments related to IRS refunds of taxes paid on unemployment income or people who received interest on a tax refund. Normally, the IRS is required to pay interest on a refund if the refund is issued after a statutory 45-day period.

The IRS is sending a Form 1099-INT to anyone who receives interest totaling at least $10. The IRS reminds people to watch their mail for Forms 1099, not just from the IRS and other payers. Due to IRS mailing issues and other factors, taxpayers may continue to see these arrive in the mail through February.