IRS Has Yet to Process Millions of Individual and Business Tax Returns from Last Filing Season
In a recent foxbusiness.com article about the IRS National Taxpayer Advocate (NTA) annual report, it states that as of November the IRS still had 7.1 million unprocessed individual tax returns from last tax season, as well as 2.3 million unprocessed business returns, with some of the returns going back to April 15.
A couple of comments in the news article that says the NTA states are:
“The challenges created by the COVID-19 pandemic will continue through the 2021 filing season and possibly for months longer, affecting both the IRS and taxpayers,” Collins wrote in the report to lawmakers.”
However, the agency’s “inability to timely open and process” about 16 million paper returns led to delays, as did fraud detection filters, which have “high false positive rates.”
Since fiscal 2010, Collins said Congress has reduced the agency’s budget by 20% accounting for inflation, while staffing levels have declined at the same rate.
Both problems have hindered the IRS’ ability to serve taxpayers. For example, 75 million calls went unanswered in fiscal 2020, Collins said.
The agency has for years talked about the need to update and modernize infrastructure, which Collins said dates back to the 1960s.