TAMPA, Fla. - As millions scramble to get tax returns prepared for Wednesday’s deadline, the IRS is also feeling a lot of pressure.
The agency is experiencing a backlog as it has many employees working from home coupled with the fact that they had to process 160 million stimulus checks this spring.
According to the National Taxpayer Advocate, as of May 16, the IRS had a backlog of 4.7 million paper returns.
The tax agency says it's bringing more workers back to the office this week and the IRS says it’s best to file electronically.
If the IRS delays your refund -- as long as you file by today -- the government will pay you interest dating all the way back to the original tax day, April 15. That’s anywhere from 3% to 5% interest.
Things could get even more behind if the tax agency has to process another round of stimulus payments -- that’s still up in the air with Congress.
According to a survey by Tax Audit, 61% of taxpayers are deeply concerned that the financial damage done by COVID-19 may force them into tax debt.
If the extra three months isn't enough, tax filers can request another three-month extension, though you need to submit what you owe by July 15 to avoid interest and penalty fees.