IRS GEARING UP FOR INCREASED COLLECTIONS

IRS gearing up for increased collections. The IRS has, as many businesses during the Covid pandemic, had a rough time lately. After being shut down for nearly 7 months during the initial outbreak of the virus, then starting up only to be shut down for a shorter period during the Delta variant, they fell behind on the number of Tax Returns that were processed. At one point they stood at nearly 22 million, depending on what source you listened to. That has come down, partly because the IRS shifted about 700 workers from certain duties to filing back tax returns, then went out and hired 10,000 additional people to have what they called a “surge”, where they could get the returns caught up quickly. The estimates on when the backlog will be completely dealt with vary from October at best, to December of 2022 at worst. The Congress in the meantime has shuffled some additional funds the IRS way, to modernize the agency, and increase certain functions that need improvement, one of them being Collections. IRS gearing up for increased collections.

The news reports that stated the IRS dumped millions of “Information Returns” turned out to be fake news. The news came out one day later, that in reality they only dumped one percent of the “Information Returns’ the news article discussed. It seems they have a bad rap, due to poor service, which is being addressed by the government. It seems that the only time Congress takes action, is when it actually impacts them, or their constituents scream bloody murder. They could have seen this problem brewing for years, but waited for the pot to boil over to act.

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