ADDITIONAL MEASURES TO CURE IRS BACKLOG
August 12, 2022 - Douglas Myser
Additional measures to cure IRS backlog. During the initial Covid lockdown, the IRS and other government agencies, along with households and private industry, were all locked down for the first six months. The IRS is still recovering from that initial lockdown. In the beginning, estimates ranged that the IRS had fallen behind in processing between 24 and 20 million tax returns. The numbers of letters and other correspondence also ran into the millions. And then came the Delta surge of Covid and another lockdown. The end result between that and the Congress giving the IRS additional responsibilities in administering the stimulus checks, was an agency that was and still is playing catch up. To ensure that would happen quickly, the IRS initially hired an additional 2000 people and sent 800 in other functions, over to the tax processing unit, to create a "surge", designed to catch up fast. That started in the winter of 2021 and is expected to be completed by the end of 2022. Additional measures to cure IRS backlog.
Once this happened to the IRS, it created ripe conditions for the Congress to finally fund the agency appropriately. For over 12 years the IRS has been under funded, with more work to do, and less resources to do it. The net result are the revelations in the Panama Papers and Pandora Papers, of the wealthy, celebrities, sports figures, politicians from around the world, including in the United States, who have been stashing money in shell companies overseas to hide from the tax man. The Congress has just passed a bill to add 80,000 new IRS employees who are going to get the agency back to where it once was, in essence doing their job and collecting taxes to pay down the deficit.
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