IRS BACKLOG OF TAX RETURNS

February 19, 2022 - Douglas Myser

IRS backlog of tax returns. The IRS has opened tax filing season, but the agency still has a backlog of tax returns from the 2021 tax filing season. So you can expect large delays in the processing of your tax return, as the IRS is concentrating on clearing out the 2021 backlog. The backlog was created due to the underfunding of the IRS over the last decade. The IRS has its own internal watchdog, the National Taxpayer Advocate. In her annual report to Congress, the advocate, Erin Collins, said that in 2021, the agency had a backlog of some 35 million tax returns that required manual processing. Taxpayers who called the IRS had a one in nine chance of actually getting through in 2021. IRS backlog of tax returns.

The IRS recently stated it was suspending certain notices regarding past due amounts, and unfiled tax returns, as it is shifting the resources that would normally field those calls and answer the questions of those individuals, will be shifted to helping catch up the unfiled 2021 tax returns that still run into the millions, even though the IRS has brought the original number of 35 million down significantly. The suspension of sending those notices out, is only a short term situation, until the IRS begins to forward them out again. Unfortunately, for those facing Collection Action right now, like a Tax Lien, Bank Levy, or an IRS Wage Garnishment, handling on your own is extremely difficult as getting through to the Collection Division is almost impossible. The Collection Division collects tax and is not there to discuss Tax Relief options with you.

If you are facing current Collection Action right now, calling a Tax Resolution firm is your best option. You can have them file your tax returns, and go over your tax relief options, so you can make the right choice in pursuit of financial freedom.