IRS CATCHING UP LAST YEAR’S TAX RETURNS

IRS catching up last year’s tax returns. Several different estimates have recently made headlines about how many tax returns the IRS is behind for last year. The range is anywhere from 12 million to 5 million, depending upon who you listen to. But one thing is certain, its going to delay the processing of this year’s tax returns. The IRS announced that it is going to reassign nearly twenty percent of the IRS workforce to catching up last years tax returns. The urgency is not lost upon the agency, and they are aware of the problems it will cause for processing of this years tax returns. IRS catching up last year’s tax returns.

Its important that the IRS finish up with last year first, as many tax calculations are made using last years tax returns. Carry forward calculations, information processing, all rely on the sequence of tax returns being filed in the order of the year. So getting last year’s returns caught up became a big priority, incidentally, not until this year’s tax filing season was upon us. The IRS also has temporarily stopped sending out certain collection letters, until the back tax return issue is complete, as the resources to deal with people responding to those letters will not be there, since the IRS reassigned those people to catch up the back return issue. Further guidance will be forthcoming form the IRS, on how long the delay of collection letters will be. Those with tax debt’s may consider a Tax Resolution Company to get through and solve their tax debt. At some point if the IRS does contact you and cannot get through, you may find yourself with a IRS Wage Garnishment.

It seems that the budget cuts at the IRS have finally come back to bite the Congress in the pocketbook. As they try to close the gap, between what the government brings in, and what it spends, it cannot do it effectively with a weakened IRS. Calls for additional funding at the IRS have come from the White House and both parties in the Congress. It seems like its only a matter of time until that becomes a reality.