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IRS Backlog Now Over 21 Million

According to a report released on Wednesday by the nation’s foremost taxpayer advocate Erin M. Collins, the number of unprocessed tax returns at the IRS has risen to over 21 million. Due to the mounting backlog of unprocessed returns, millions of Americans are still waiting for their tax refunds.

As of right now, Collins writes, “the IRS is still attempting to clear an extraordinary backlog of unprocessed paper tax returns and those with suspected errors or suspected identity theft.”

“Taxpayers continue to encounter previously unheard-of difficulties contacting the IRS by phone, and the IRS’s previously unheard-of delays in processing correspondence are causing significant refund delays and aggravating taxpayers,” the IRS stated.

Collins claimed in specific statements that the Biden administration fell short in using relief monies to tackle a critical issue that was made worse by the pandemic.

IRS

The IRS could have acted more forcefully at the time when the paper processing delays became apparent, which was more than a year ago.

The inventory backlog carried into this filing season might have been reduced, and the payment of refunds to millions of taxpayers could have been quickened, had the IRS taken action a year ago to shift current personnel to processing tasks.

Before the 2022 filing season, the IRS might have avoided the requirement for personnel to perform the labour-intensive task of transcribing paper tax returns by implementing 2-D barcoding, optical character recognition, or comparable technology.

The number of unprocessed tax returns at the IRS has increased to nearly 21 million, according to a report released on Wednesday by the nation’s leading taxpayer advocate Erin M. Collins. Millions of Americans are still waiting for their tax refunds as a result of the growing backlog of unprocessed returns.

“The IRS is still trying to clear an unprecedented backlog of unprocessed paper tax returns and those with suspected mistakes or suspected identity theft,” Collins writes as of right now.

Collins asserted in particular statements that the Biden administration failed to effectively use relief funds to address a pressing problem that the pandemic had made worse.

When the paper processing delays became obvious, which was more than a year ago, the IRS might have taken more action.

The IRS received an additional $1.5 billion thanks to the American Rescue Plan Act of 2021 (ARPA), which was passed 15 months ago.

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The American Rescue Plan Act of 2021 (ARPA), which was passed 15 months ago, granted the IRS an additional $1.5 billion.

Had the IRS spent some of these monies promptly, it could have cleared the backlog, answered more taxpayer phone calls, and otherwise enhanced taxpayer service. These were missed chances.

Collins added that the IRS is committed to getting the backlog down to a “healthy” level by the end of the year, but she cautioned that it might be “difficult to meet” this objective.

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