IRS warns citizens to hold tax return file in 20 states

The Internal revenue service is warning tax paying citizens in 20 states not to file returns until it determines whether it can tax special refunds.

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As promises before by IRS to taxpayers that expect "experience improvements" as the file for 2022 tax return file

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Taxpayers in more than 20 states were told to postpone filing their tax returns until the IRS worked out the glitches.

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The National Taxpayer Advocate published a harsh blog on Thursday, questioning why the IRS waited so long to address whether special tax refunds or payments are taxable income on a federal income tax return.

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According to that blog, the IRS failed to provide timely guidance.

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Erin Collins, an IRS "voice of the taxpayer" advocate, wrote, "This was a known issue."

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According to Collins, "the failure to have discovered and addressed this issue before the filing season suggests someone, or everyone, was asleep at the switch."

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If these taxpayers file early, they risk filing incorrectly.

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Tax software providers and tax experts are also waiting to see what action the IRS will take next.

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