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TAX PRACTICE & PROCEDURES

scope and geographic areas of this initia-
tive have continued to expand. Another Following the NTA report, several members
program that has recently launched is
of Congress sent letters calling for action to
“Operation Surround Sound.” Here,
too, the Wealth Squad, in coordination address the IRS’s backlog of unprocessed tax
with its counterparts in the Collection
Division, Exam, OFE, and, when ap- returns as the 2022 tax season began.
propriate, CID, works to identify and
pursue the most egregious high-income
nonfilers, as well as high-income filers The report details what Collins identi- taxpayers and practitioners during the
with large balances due. fies as the 10 most serious problems 2022 filing season. Joining the AICPA
As with all matters before the IRS, it encountered by taxpayers in 2021: in this action were Latino Tax Pro,
is generally prudent to advise clients to 1. Processing and refund delays; National Association of Black Accoun-
come into compliance voluntarily, before 2. IRS recruitment, hiring, and tants, National Association of Enrolled
the IRS catches up with them. If there training; Agents, National Association of Tax
is potential criminal exposure, the IRS 3. Telephone and in-person service; Professionals, National Conference of
voluntary disclosure program may be the 4. Transparency and clarity; CPA Practitioners, National Society of
best option. It is advisable to speak with 5. Filing season delays; Accountants, National Society of Black
an attorney to discuss the best course of 6. Online accounts; CPAs, National Society of Tax Profes-
corrective action. 7. Digital communications; sionals, Padgett Business Services, and
From Seth Kossman, Esq., CPA, 8. E-filing barriers; Prosperity Now.
LL.M., Baltimore 9. Correspondence audits; and On Jan. 27, the IRS announced that
10. Collection. it was suspending certain automated
The NTA report highlights that letters in recognition of the possibility
Practice & Procedures the IRS’s backlog, as of mid-December that the return was in fact filed but had
2021, consisted of: not yet been processed. Subsequently,
Tips for working effectively ■ 6.2 million unprocessed individual on Feb. 9, the IRS announced that
with the IRS returns (Form 1040, U.S. Individual it was suspending additional letters
The past two years have been tough on Income Tax Return); and notices.
the profession, with repeated rounds of ■ 2.8 million unprocessed business
new legislation and fresh IRS guidance, returns (Form 941, Employer’s Practical tips
sometimes with convoluted proce- Quarterly Federal Tax Return); Given the many challenges practitio-
dural processes. ■ 2.4 million unprocessed amended ners face in terms of IRS services, here
Additional tension has stemmed individual returns (Form 1040-X, are some practical tips to maximize
from dealing with continued delays as Amended U.S. Individual Income Tax service to clients:
the IRS has grappled with the after- Return); ■ Encourage clients to register for
math of its campus shutdowns, reduced ■ 427,000 unprocessed amended an Online Account where they can
personnel, and the infamous backlog business returns (Form 941-X, view the amount they owe, verify
of paper returns and correspondence. Adjusted Employer’s Quarterly Federal the amount of any economic impact
Delays in live phone support, answering Tax Return or Claim for Refund); and payments (EIP) received, make and
mail from taxpayers, reviewing paper ■ Approximately 4.75 million pieces track payments, and view payment
returns, and processing payments –– of general taxpayer correspondence. plan details.
among other issues –– all resulted from Following the NTA report, several ■ For clients who receive advance
challenging circumstances. members of Congress sent letters call- child tax credit (CTC) payments,
National Taxpayer Advocate (NTA) ing for action to address the IRS’s continue to request Letter 6419,
Erin M. Collins called 2021 “the most backlog of unprocessed tax returns as 2021 Total Advance Child Tax Credit
challenging year taxpayers and tax the 2022 tax season began. Payments (one for each spouse for
professionals have ever experienced” in Additionally, a coalition of 11 stake- joint filers), that details the amount
her Annual Report to Congress released holder groups from the tax practitioner of advance payments received.
in January 2022, summarized in an ex- community urged the IRS to take steps Although the letter will be accurate
ecutive summary and IRS news release. to reduce unnecessary burdens for for most taxpayers, in some instances

36 April 2022 The Tax Adviser