WASHINGTON —The Internal Revenue Service today issued the Data Book detailing the agency’s activities during fiscal year 2021 (Oct. 1, 2020 – Sept. 30, 2021).  

“During Fiscal Year 2021, the COVID-19 pandemic continued to present the IRS with some of the greatest challenges in our agency’s history, and the way our employees responded illustrates the significant role that the IRS plays in the overall health of our country,” said IRS Commissioner Chuck Rettig.  

“The IRS was called on to provide economic relief during this national crisis while also fulfilling our agency’s core responsibilities of tax administration; IRS employees answered Congress’ call to deliver two more rounds of Economic Impact Payments and also implemented changes to the Earned Income Tax Credit, the Child Tax Credit and other refundable credits as part of the American Rescue Plan. The breadth of these missions has strengthened my belief that a fully functioning IRS is critical to the success of our nation.”

In addition to describing work performed during the pandemic, the IRS Data Book for fiscal year 2021 comprises 33 tables describing a wide variety of IRS activities from returns processed, revenue collected, and refunds issued to the number of examinations conducted and the amount of additional tax recommended, as well as budget and personnel information. The Data Book provides point-in-time estimates of IRS activities as of September 2021. A lengthier discussion of recent data was also released today.

As the pandemic continued into 2021, the IRS delivered tax administration relief to millions of taxpayers, providing financial assistance for Americans. The American Rescue Plan Act of 2021 authorized additional rounds of stimulus payments (EIP 3), which was signed into law on March 11, 2021. The IRS started issuing checks the very next day— March 12, 2021—providing immediate help to people across the country. The 2020 Recovery Rebate Credits allowed individuals who did not receive their first- or second-round EIPs, or who received less than the amounts they were eligible for, to claim the credits when they filed their 2020 tax return.

Advance Child Tax Credit and online support

The American Rescue Plan contained the important change allowing up to half of the tax year 2021 Child Tax Credits to be disbursed as advance payments to eligible families from July through

December. As a result, during the second half of 2021, more than 37 million families—covering more than 61 million qualifying children—received more than $93 billion in advance CTC payments. 

In addition to COVID-19-related tax relief, the IRS implemented vital online tools to support the 2021 advance CTC payments and reduce child poverty. These online tools included: 

Tax administration during COVID-19

At the same time as providing various pandemic-related tax relief measures to Americans, the agency continued its everyday operations, processing more than 261 million tax returns, and collecting more than $4.1 trillion in federal taxes during the fiscal year – about 96% of federal revenue from all sources. 

Collection revenue Overall, net revenue through enforcement by the collection function equaled almost $60 billion, an increase of 54% over the prior year. As part of its collection activities, the IRS saw an increase in the use of Payment Plans. Almost 2.4 million taxpayers established new payment plans (Installment Agreements) with the IRS during FY 2021, an increase of 29% compared to FY 2020. Furthermore, IRS collected nearly $13.7 billion through installment agreements in 2021, up 9% from the prior fiscal year.

Other IRS activities

Under the IRS’s Comprehensive Taxpayer Attitude Survey, the most recent findings were that most taxpayers still agree that cheating on their income taxes is not at all acceptable.

You’ll find many fascinating statistics within the Data Book," said Rettig. "But there’s more to the IRS than numbers and graphs. IRS employees are dedicated to the mission, and our agency is made up of people who give back to their communities and help one another. Our employees provide significant support for those devastated by hurricanes, wildfires and other natural disasters. Across the nation, they did amazing work in their communities to help those impacted by COVID-19."

Issues that TAS will not Accept

IRM 13.1.7.4, Exceptions to Taxpayer Advocate Service Criteria, includes information about cases TAS will no longer accept. On May 13, 2022, TAS changed its case acceptance criteria and will no longer accept referrals for assistance regarding the following:

Issue	Exclusion Period
Processing of Mailed Paper Original Returns TAS will not accept any cases where the primary issue is processing a 2021 original return. TAS will still accept economic burden cases (Criteria 1 - 4) and Best Interest of the Taxpayer (Criteria 8) for tax year 2020 and prior year original returns filed before 6/1/2021 based on either the IRS received date on IDRS or the date the taxpayer claims to have filed for returns not yet showing as received on IDRS. Employees can use IDRS Command Code TRDBV, Element/Data Lines 15 and 16 to determine if a return was filed on Paper. See Exhibit 2.3.73-3, COMMAND CODE TRDBV.	1/1/2022 to 10/15/2022
Processing of Mailed Paper Amended Returns TAS will not accept any cases where the primary issue is processing an amended tax year 2021 return. TAS will still accept economic burden cases (Criteria 1 - 4) and Best Interest of the Taxpayer (Criteria 8) for tax year 2020 and prior year amended returns filed before 6/1/2021 based on either the IRS received date on IDRS or the date the taxpayer claims to have filed for returns not yet showing as received on IDRS. Employees can use IDRS Command Code TRDBV, Element/Data Lines 15 and 16 to determine if a return was filed on Paper. See Exhibit 2.3.73-3, COMMAND CODE TRDBV.	1/1/2021 to 10/15/2022
Returns held in Submission Processing's Unpostables or ERS Rejects Units; including returns held for issues regarding the claimed Health Insurance Premium Tax Credit for Individuals: TAS will not accept a case where the return is in ERS Status 900 (overflow), 100 (initial screening stage), 281-284 (systemic pilot program non-workable suspense), or 481-484 (systemic pilot program, workable suspense). TAS will not accept any systemic burden cases (Criteria 5 -7) where the sole issue is the return is assigned to Unpostables or ERS Rejects Units.	5/18/2022 to 10/15/2022

Do not refer cases to TAS involving a Taxpayer Protection Program (TPP) Unpostable 126 Reason Code 0 that has been closed. In these instances, the taxpayer has verified identity either via the TPP phone line or the Identity Verification Service website. Once the unpostable is closed and the taxpayers have requested a direct deposit refund, most taxpayers will receive their refund within two weeks. If the unpostable is closed and the taxpayers requested a paper check, most taxpayers will receive their refund within four weeks. There is nothing TAS can do to accelerate issuance of the refund.

See the TAS Criteria Determinator tool for assistance in determining if a taxpayer's issue meets TAS case acceptance criteria.

What TAS Cannot Do

TAS cannot obtain a refund for a taxpayer within 24 hours. TAS follows the same manual refund procedures as all other IRS employees contained in IRM 21.4.4, Manual Refunds. IRS should not tell taxpayers or transfer taxpayers to TAS with an expectation that TAS can get their refund any sooner than normal manual refund processing timeframes.

Per IRM 21.4.6.5.11.1, Offset Bypass Refund, if a TOP debt exists, the IRS has no authority to issue an OBR. TAS cannot bypass this either so do not send the taxpayer to TAS.

Communication with Taxpayers

Last year TAS was not able to meet its normal timeframes to contact taxpayers due to reduced IRS staffing and employees being evacuated from the workspace because of COVID-19. Due to ongoing challenges faced by everyone Servicewide, TAS continues to be in the same position again this year. When advising taxpayers of the date they will be contacted by TAS, let them know that it could take up to four weeks for them to hear from their Case Advocate because of high volumes of TAS referrals. Please share with taxpayers that TAS employees are diligently working to serve taxpayers, but we are experiencing delays and interruptions in working cases due to the widespread impact on IRS operations from COVID-19. Once a request for assistance (AMS e-911) meeting TAS case acceptance criteria has been sent to TAS additional e-911s should not be sent to TAS until the four-week time period from the original e-911 has passed.

After a case has been assigned, the Case Advocate will discuss with the taxpayer what actions will be performed to resolve their issue. Due to the COVID-19 impact on IRS operations the time needed to resolve a taxpayer's issue may be greater than normal. Therefore, do not provide the taxpayer with an estimated timeframe for resolution before sending the referral to TAS.

Before sending a taxpayer's inquiry to TAS, the IRS needs to verify a correct address for the taxpayer and include it on the e-911; otherwise TAS is unable to correspond with the taxpayer. The e-911 systemically populates with the IDRS address, but the assistor can erase that address and input the correct address. Please be sure the address and contact information on the e-911 is current before sending the referral to TAS.

WASHINGTON — The Internal Revenue Service today revised frequently asked questions (FAQs) for the 2021 Earned Income Tax Credit (FS-2022-30) to educate eligible taxpayers on how to properly claim the credit when they prepare and file their 2021 tax return.

The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families in the form of a credit to either reduce the taxes owed or an added payment to increase a tax refund. The amount of the credit may change if the taxpayer has children, dependents, are disabled or meet other criteria.

These FAQ’s detail what the EITC is, how it was expanded for 2021, which taxpayers are eligible, and how to claim it. 

Question 15, “Can I elect to use my 2019 earned income to figure my Earned Income Tax Credit for 2021?” was revised.

File for free and use direct deposit

Taxpayers with income is $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided.

More information about reliance is available.

WASHINGTON – The Internal Revenue Service made an important enhancement to the “Where’s My Refund?” online tool this week, introducing a new feature that allows taxpayers to check the status of their current tax year and two previous years’ refunds. 

Taxpayers can select any of the three most recent tax years to check their refund status. They’ll need their Social Security number or ITIN, filing status and expected refund amount from the original filed tax return for the tax year they’re checking. 

Previously, “Where’s My Refund?” only displayed the status of the most recently filed tax return within the past two tax years. Information available to those calling the refund hotline will be limited to the 2021 tax return. 

Using “Where’s My Refund?”, taxpayers can start checking the status of their refund within:

The IRS reminds taxpayers that Online Account continues to be the best option for finding their prior year adjusted gross income, balance due or other type of account information.

“We encourage those who expect a refund, but requested an extension, to file as soon as they’re ready. We process returns on a first-in basis, so the sooner the better,” said IRS Commissioner Chuck Rettig. “There’s really no reason to wait until October 17 if filers have the relevant information to file now. Free File is still available for extension recipients to use to prepare and file their federal tax return for free.”

Electronic filing is open 24/7 and the IRS continues to receive returns and issue refunds. Once taxpayers have filed, they can track their refund with “Where's My Refund?”

About the ‘Where’s My Refund?’ tool

This helpful tool, accessible on IRS.gov or the IRS2Go mobile app, allows taxpayers to track their refund through three stages: 

1. Return received.
2. Refund approved.
3. Refund sent. 

The tool is updated once a day, usually overnight, and gives taxpayers a projected refund issuance date as soon as it’s approved. 

It’s also one of the most popular online features available from IRS. The “Where’s My Refund?” tool was developed in 2002 and was used by taxpayers more than 776 million times in 2021. 

Enhancing taxpayer experience & IT modernization

The IRS continues to enhance the customer experience by enhancing and expanding digital tools that deliver improved services to taxpayers.

“The IRS is committed to identifying opportunities to make improvements in real time for taxpayers and the tax professional community,” said Rettig. “This enhancement to ‘Where’s My Refund?’ is just one of many.”

Additional refund status information

There’s no need to call the IRS to check on refund status unless it has been more than 21 days since the return was filed or the tool says the IRS can provide more information. 

If the IRS needs more information to process the return, the taxpayer will be contacted by mail. 

For more information about checking the status of a tax refund, please visit IRS.gov/refunds.

WASHINGTON – The IRS today issued a revised set of frequently asked questions for the 2021 Child Tax Credit. These frequently asked questions (FAQs) are released to the public in Fact Sheet 2022-29, May 20, 2022.

These FAQ revisions are as follows:

• Topic A: General Information: Updated questions 1,2,3,4,5,8,9,10,11,13,14,15,16
• Topic E: Advance Payment Process of the Child Tax Credit: Updated questions 2,3
• Topic F: Updating Your Child Tax Credit Information During 2021: Removed questions 1,2 and updated 3,4
• Topic G: Receiving Advance Child Tax Credit Payments: Updated questions 1,6,7,9,10,11
• Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return: Updated questions 1,2,9 and removed 10
• Topic J: Unenrolling from Advance Payments: Updated question 1 and removed 2,3,4,5,6,7
• Topic K: Verifying Your Identity to View your Payments2021 Child Tax Credit: Updated 2,3,5,6 and removed 7
• Topic L: Commonly Asked Shared-Custody Questions: Updated 1 and 2

More information about reliance is available.

WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning July 1, 2022. The rates will be: 

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points, and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during April 2022 to take effect May 1, 2022, based on daily compounding.

Revenue Ruling 2022-11 announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2022-23, dated June 6, 2022.

Revenue Ruling 2022-11; Interest rates: underpayments and overpayments. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning July 1, 2022, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.

Revenue Ruling 2022-11 will be in IRB 2022-23, dated June 6, 2022.

Notice 2022-28 provides guidance under the Internal Revenue Code (Code) to employees and employers using employer leave-based donation programs on the federal income and employment tax treatment of cash payments made by employers under such programs to aid victims of the further invasion of Ukraine by the Russian Federation beginning on February 24, 2022 (further Russian invasion of Ukraine).  Under employer leave-based donation programs, employees may elect to forego their accumulated leave and employers make cash donations up to the dollar amount of the foregone leave to tax-exempt entities described in section 170(c) of the Code (section 170(c) organizations) that provide aid to victims of the further Russian invasion of Ukraine.

Notice 2022-28 will appear in IRB 2022-23, date June 6, 2022.

Notice 2022-25 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for May 2022 used under § 417(e)(3)(D), the 24-month average segment rates applicable for May 2022, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv). 

Notice 2022-25 will appear in IRB 2022-23, dated June 6, 2022.

Revenue Ruling 2022-10 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Ruling 2022-10 will be in IRB:  2022-23, dated June 6, 2022.