The Internal Revenue Service (IRS) confirmed that it has issued more than 22 million tax refunds worth a total of roughly $78 billion. That means the average refund comes in at $3,536, which is up by approximately 23 percent from the average refund of $2,880 at the same time last year. However, some families are seeing smaller refunds this year due to the advanced payments from the enhanced child tax credit and the pausing of student loan payments.

The IRS has noted that “weekly numbers can shift dramatically during the initial weeks of filing season due to numerous factors, including the calendar and filing patterns that can change year to year.”

“We urge extra attention to those who received an economic impact payment or an advance child tax credit last year,” IRS Commissioner Chuck Rettig said in a statement.

“People should make sure they report the correct amount on their tax return to avoid delays,” Rettig continued.

The agency has said that most American taxpayers—if they have error-free returns and file electronically—should get their hands on their tax refunds within twenty-one days of filing.

Delays Still Common

However, as reported by CNBC, “the IRS sent about 7.4 million ‘math error’ notices for stimulus payment mistakes from January 1 through July 15, 2021, delaying refunds, and many are still waiting for a resolution.”

Additionally, taxpayers who claimed Earned Income Tax Credit or Additional Child Tax Credit payments are only eligible to receive their refunds starting this week. By law, refunds that include these particular credits can’t be issued immediately, as the IRS needs additional time to verify eligibility and prevent errors and fraud.

Tackling the Huge Backlog

Meanwhile, the IRS has made use of multiple “surge teams” in order to address a massive backlog of unprocessed tax returns and correspondence. Rettig has also shed light on the fact that the agency is dealing with serious staffing and budgeting issues.

In fact, compared to 2010, the agency has roughly 20,000 fewer employees and 20 percent less funding when adjusted for inflation, according to the Congressional Budget Office.

Further detailing the tax agency’s ongoing staffing issues and backlogs, National Taxpayer Advocate Erin Collins issued a report to Congress that said she is “deeply concerned about the upcoming filing season.”

She added that “the coronavirus pandemic has created enormous challenges for taxpayers, tax professionals, and the IRS.” As a result, this year has been the “most challenging year taxpayers and tax professionals have ever experienced.”

Collins concluded by saying that the processing delays could be “as bad, and potentially worse” this tax season.

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.