Although the tax filing deadline passed five days ago, millions of filers encountered rejections when attempting to submit their returns for the year.
According to reports, many taxpayers encountered difficulties completing the identity verification process when attempting to initiate an electronic return on several of the most popular e-filing sites. Typically, several software programs will require a filer to enter the prior year’s AGI or adjusted growth income in order to verify identity and help combat fraudulent returns and identity theft. For many would-be on-time filers, the information was either incorrect or completely missing.
The Internal Revenue Service, which has been facing an unprecedented backlog of tax returns due to a slew of tax updates, multiple rounds of stimulus payments, and a severe staffing shortage due to Covid-19, has been tasked with processing nearly 160 million individual returns. This is in addition to the millions of potentially unprocessed returns received during the pandemic’s first two years.
For the time being, taxpayers may file an extension via the website in order to avoid penalties or late filing fees for failing to file by the 60-day deadline. However, those who made it through before Tax Day on April 18th at 12 a.m. ended up resolving their dilemma by entering $0 in the AGI field.
For the years 2020 through 2022, late filing fees range between $435 and $535. However, if you are unable to pay your taxes, requesting a payment agreement may be the best course of action.