OUTDATED TECH THE REASON FOR RETURN FIASCO

July 5, 2022 - Douglas Myser

Outdated tech the reason for return fiasco. Over the last decade, prior to the Biden Administration's plan to update the IRS workforce and technology, the IRS had the oldest computer system in the entire U.S. Government. When 30 million information returns were "dumped" inadvertently, the finger pointing began. A statement by the IRS said "Broadly, this situation reflects the significant issues posed by antiquated IRS technology. Adding that that the IRS in 2020 placed a higher priority on processing tax returns, which were significantly backlogged and are still being brought current, to issue taxpayer refunds amid the pandemic. Yet, ultimately the blame doe not fall or belong to the IRS. It belongs to Congress for failing to significantly increase the IRS budget, while at the same time, increasing its workload in a very significant way. Outdated tech the reason for return fiasco.

The IRS came out with a statement shortly after determining the problem with the dumped returns, and stated that no taxpayers would be negatively impacted by the mistake. Of course in practice what that means is that the IRS may issue penalties against taxpayers, who will then have to apply for a Penalty Abatement, based on the IRS mistake. Tax Relief in this situation will be available, but that usually means the taxpayer has to make effort to correct a mistake that should not have happened to begin with, costing time, and sometimes money to correct. Some of those taxpayers will need a Tax Resolution Services firm to figure it out.

TIGTA identified SCRIPS as the affected system, according to Internal Revenue Manual Section 3.41.269.1 and IRS News Release 93-20. If you are impacted by this call our Tax Resolution firm for help. We work Nationwide and are a 36 year old Tax Resolution Company, respected by other Tax Resolution Companies. We make the Tax Resolution process easy to go through. We can determine all of your options for dealing with a tax debt, including the IRS Fresh Start Program. Unfiled Returns ? Let us file them. Call prior to a IRS Wage Garnishment or Bank Levy, or help if you have one. 1-888-689-7861