Processing of tax returns from 2020 ‘above 85% complete’
The end is in sight for the processing of 2020 tax returns, as the latest tax backlog figures were published this week.
The Revenue Service said it was making progress, but three in 20 personal returns from that year still need to be processed.
Intermittent updates are given on the progress of processing returns, as the Revenue continues to work through thousands in a long-running backlog.
‘Work is always ongoing to tackle the backlog of income tax returns with progress being made constantly and we’ve made a number of effective changes to help, including encouraging more people to file online, holding drop-in sessions for people who would like help with filing their tax return, and amending the paper tax form so that it can be processed more efficiently,’ said director Nicky Forshaw.
‘We are currently prioritising returns from 2020, which are above 85% completion.’
The latest figure shows a marked jump in 2020 processing figures, from 73% in October to 85% this month.
The deadline for 2020 tax returns was March 2022.
Progress is also being made on more recent years, with 66% of personal returns now processed, up from 55% in October.
And of 2022 returns – which only had its tax deadline in February – 44% of returns have already been processed.
The tax backlog has been a long-term problem for the Revenue Service, however it became much worse during Covid and even saw tax submission deadlines pushed back.
The period has also seen the introduction of individual taxation, with married couples no longer able to file jointly, and each individual required to submit their own tax returns.
‘The rule change means that we do anticipate an increased number of tax returns to be filed for 2023, but that won’t mean an automatic increase in the backlog,’ the service said.
‘The move to independent taxation, which means that married couples must now submit individual returns will actually ease pressures in other ways.
‘At the moment when individuals marry, separate, or change their circumstances, it creates a lot of manual work for the Revenue Service.
‘When that extra work falls away there’ll be greater capacity to process the separate returns.’
The revenue service has said that submitting tax forms online has helped reduce the backlog.
The deadline for tax returns covering the calendar year 2023 is 31 January 2025.
