Still haven't filed your taxes? Here's what you need to know

Category: Breaking News

The IRS has already processed more than 90 million individual income tax returns for tax year 2022, according to the latest agency update. That leaves roughly 60 million filers still dragging their feet as the April 18 deadline barrels down. If you're among the stragglers, stop pretending this is business as usual. The agency is running leaner after years of underfunding, refunds are averaging $3,043 so far, and penalties hit harder than most people expect when they blow past the line.

The Raw Numbers Behind This Season

Through mid-March, the IRS reported accepting 90.2 million returns, with 78 percent of those yielding refunds totaling $202 billion. Compare that to 2022's pace for 2021 returns and you'll see processing volume is up 4 percent, but error rates remain stubbornly high at 17 percent of e-filed returns. The backlog from prior years has shrunk to under 2 million unprocessed paper returns, yet the agency still warns that any return with missing 1099-K forms from gig platforms or mismatched W-2 data will trigger manual review that can stretch six to eight weeks.

Atlanta taxpayers are no exception. Georgia's revenue department cross-checks state returns against federal data in real time, so a federal delay directly pushes back your state refund. Last year, Georgia issued 3.1 million refunds averaging $1,872. This season's numbers track similarly, but the state flagged a 12 percent increase in returns claiming the new federal energy credits that require Form 5695.

April 18 Is Not a Suggestion

The 2023 filing deadline lands on April 18 because April 15 falls on a Saturday and Emancipation Day bumps it in D.C. Miss it without an extension and you face a failure-to-file penalty of 5 percent of unpaid tax per month, capped at 25 percent. The failure-to-pay penalty runs 0.5 percent per month. File late and pay late and those penalties stack. Interest compounds daily on the balance at the current 7 percent annual rate.

An automatic extension to October 16 buys you time to file, but it does not postpone payment. If you owe and skip the April 18 payment, the penalties still accrue from that date. The IRS received 16.8 million extension requests last year. Most of those filers paid what they estimated they owed by the original deadline. The ones who didn't got hit with bills averaging $1,240 in combined penalties and interest by October.

Who Actually Needs to File Right Now

Single filers under 65 with gross income over $12,950 must file. Married couples filing jointly clear the threshold at $25,900. Self-employed workers hit the requirement at just $400 in net earnings. Gig economy drivers and freelancers who received 1099-NEC forms from more than one platform are seeing the new $600 threshold for 1099-K reporting kick in this year, a change that caught thousands off guard.

If you received unemployment compensation in 2022, remember that the $10,200 exclusion that applied in 2020 and 2021 expired. Georgia does not conform to that old federal break, so state auditors are matching federal unemployment 1099-G forms aggressively. One missed Form 1099 can turn a simple return into an audit trigger.

Expert Take: What CPAs Are Seeing in Atlanta Offices

Local CPA Marcus Delgado, who runs a 12-person firm in Buckhead, says his office has already processed 1,400 returns this season but still has 300 clients sitting on incomplete organizer packets. "The biggest delay is people waiting on K-1s from partnerships and S-corps," Delgado told me. "Those schedules often arrive in late March. If you push filing to the extension, make sure you have a solid estimated payment ready or the IRS will treat you like you ignored the deadline entirely."

Tax attorney Lena Vargas, who handles IRS disputes, adds that amended returns for prior years are surging. "Clients who filed in 2021 claiming the employee retention credit without proper documentation are now getting CP-2000 notices. Those discrepancies carry 20 percent accuracy-related penalties. Filing 2022 correctly the first time avoids that headache."

Refunds, Direct Deposit, and the New Free-File Rules

The IRS direct deposit window remains the fastest route. Returns e-filed with direct deposit see refunds in 21 days on average when there are no errors. Paper checks take six to eight weeks. The agency also expanded its free-file partnership this year to cover households earning up to $73,000, up from the prior $70,000 cap. Yet only 2.8 million taxpayers used the free options through mid-March, suggesting most still pay commercial software or preparers.

Inflation adjustments matter here. The standard deduction rose to $12,950 for singles and $25,900 for joint filers. The earned income tax credit maximum climbed to $6,660 for families with three or more qualifying children. If your income sits near phase-out ranges, running the numbers twice before hitting submit prevents leaving money on the table or triggering an under-withholding notice next year.

What Happens If You Owe and Can't Pay

The IRS offers short-term payment plans for balances under $100,000. Apply online and you can spread payments over 120 days with no setup fee if you agree to direct debit. Longer-term installment agreements carry a $31 setup fee for direct debit or $130 otherwise. Interest and the 0.5 percent monthly penalty continue until the balance hits zero. Ignoring the debt entirely leads to wage garnishment and levy actions once the balance exceeds $10,000 and collection efforts escalate.

Georgia offers its own installment program through the Department of Revenue, but it requires the federal return to be accepted first. Filing both returns on extension without payments risks simultaneous federal and state collection notices that compound stress and fees.

Bottom line: the 90 million returns already filed prove the system is moving. The remaining millions who treat April 18 like a casual suggestion are the ones who will pay extra for the privilege. Get your documents in order, estimate what you owe accurately, and file on time. The IRS does not run on goodwill, and neither should your tax strategy.

This is Jessica Ali for Global1 News, reporting from Atlanta. 🔥