January 15, 2022 - Douglas Myser

IRS tax return backlog swells. The IRS has had an awful lot of additional tasks given to it over the last few years by Congrsss and several administration's. Several changes to the tax code, each requiring a change to the computer tax code, the administration of the stimulus refunds under both President Trump and BIden, and the Covid tax law changes to boot. This along with the fact that the IRS has been under funded for quite some time. Is it any wonder that the IRS estimates large delays in Americans getting tax refunds this filing season. These individuals won't need Tax Resolution. The Internal Revenue Service closed the filing season with more than 35 million in unprocessed tax returns, as the agency's backlog grew markedly amid a crunch of challenges related to the pandemic and economic relief efforts, according to a government watchdog agnecy. IRS tax return backlog swells.


An IRS statement disputed the taxpayer advocate's methodology, arguing it does "not reflect the current situation at the IRS." The statement said many of the returns will require further correction, but are on track to be sent out. The statement also said some of the returns counted by the advocate "does not necessarily reflect unprocessed tax returns," citing as many as 2.1 million individual and busiiness tax returns are related to identity theft cases. These "may or may not be legitimate tax returns", the statement said. IRS COmmissioner Charles Rettig also told the Senate Finance Committee that the agency had processed more than 137 million individual income tax returns and sent refunds totaling more than $281 billion.

The overwhelming majority of the 35 million unprocessed returns are for the 2020 filing season that were filed in 2021. The taxpayer advocate chronicled a "perfect storm" of chalenges facing the IRS as it struggles to recover from the pandemic and implement a wide array of changes related to President Biden's economic relief efforts.