Our tax attorneys, CPAs, Enrolled Agents, and tax experts can handle the tax obligations of your business. Right now, it might be very difficult for you to handle your business affairs with the IRS because the IRS has a paperwork nightmare that was caused by the Covid pandemic shutdowns and a lack of IRS staff.
The IRS announced on September 30th that it’s processing of tax returns and tax paperwork is still months behind schedule. And what is especially troublesome is that the IRS is now suggesting that some businesses and individuals will have to file their tax returns and paperwork again because the original filings could be lost.
What a headache for businesses. It’s like repeating previous tax seasons all over again.
There’s A Problem With Form 941
There is a particular problem with Form 941 that businesses submit to the IRS quarterly. Form 941 is the quarterly report that businesses file with the IRS that tells about the employee taxes that were withheld including Social Security taxes, and what was sent to the IRS. Now we’re finding out that some filings sent by snail mail could be lost, and even some electronic filings may have been lost.
The IRS says: “As of September 28, 2022, we had 3.6 million unprocessed Forms 941. If you filed electronically and received an acknowledgment, you do not need to take any further action other than promptly responding to any requests for information. These tax returns are processed in the order received. Please don’t file a second tax return.”
That last sentence “please don’t file a second tax return” is what has businesses worried. The IRS is also reporting that some individual taxpayers may need to file tax returns again because the original filings can’t be found. Mostly the missing tax returns were sent by snail mail, and now the IRS is asking that any repeat submissions be made only electronically.
The IRS Is Behind On At Least 10-Million Tax Submissions
By the way, the IRS has 6.2-million individual tax returns it still hasn’t processed. Add 3.6-million unprocessed Form 941 filings, and the IRS has a backlog of at least 10 million returns and submissions.
Your accounting department may have its hands full with salaries, purchase orders, paying bills, and collecting invoices. Are they able to handle a repeat of a previous tax season? Call us and let’s talk about the services we can provide. We can be your tax office.