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IRS Issues Warning About 2022 Tax Returns

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Chances are you won’t be too happy about the Internal Revenue Service’s latest warning.

A number of new changes to the tax code this year are having a downward effect on the size of the average American’s tax refund.

In other words, your tax refund will probably be smaller this year (or your payment larger).

The IRS admitted as much in a November news release about filing taxes. This is for a number of reasons.

For one, Economic Impact Payments are no longer in effect; second, taxpayers can no longer deduct certain charitable contributions.

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According to CNBC, following the COVID-19 pandemic, Congress allowed many more charitable contributions to qualify for deductions.

Those changes were extended into 2021, but are no longer in effect going forward.

In addition, the Democratic Party’s American Rescue Plan Act of 2021 now allows the government to take a bigger cut of earnings passed through payment processors.

According to the IRS, the bill lowered the reporting threshold for such payments.

Previously, any individual that makes more than $20,000 through 200 transactions over one year was required to file a Form 1099-K.

Do you trust the IRS?

Now, anyone who receives a single transaction of $600 will need to file the same form.

“The IRS cautions taxpayers not to rely on receiving a 2022 federal tax refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and may take longer,” the IRS statement read.

Longer wait times for returns are thanks to additional review processes the IRS has implemented.

Indeed, it appears that taxpayers are finally beginning to feel the effect of President Joe Biden’s decision to drastically increase the size of the government’s tax-collecting arm.

Related:
IRS to Begin Mailing Compliance Letters to Over 100,000 Americans, Action Made Possible by Biden's Inflation Reduction Act

According to a September story from NPR, included in the Inflation Reduction Act was $80 billion dollars for the IRS.

This money was to be used to hire new agents, improve the department’s technology and increase the number of tax audits.

An August analysis of the increase in IRS funding posits that the IRS will indeed be increasing audits on lower-income households, weaponizing an overly complex tax code in order to penalize lower-earning Americans who make mistakes interpreting the code.

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Michael wrote for a number of entertainment news outlets before joining The Western Journal in 2020 as a staff reporter. He now manages the writing and reporting teams, overseeing the production of commentary, news and original reporting content.
Michael Austin graduated from Iowa State University in 2019. During his time in college, Michael volunteered as a social media influencer for both PragerU and Live Action. After graduation, he went on to work as a freelance journalist for various entertainment news sites before joining The Western Journal in 2020 as a staff reporter.

Since then, Michael has been promoted to the role of Manager of Writing and Reporting. His responsibilities now include managing and directing the production of commentary, news and original reporting content.
Birthplace
Ames, Iowa
Nationality
American
Education
Iowa State University
Topics of Expertise
Culture, Faith, Politics, Education, Entertainment




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