How is the IRS doing? According to key leaders on the inside, not so good. The Treasury Inspector General for Taxpayer Administration’s (TIGTA) interim report combined with the National Taxpayer Advocate’s midyear report highlighted a federal agency that was already struggling to keep up … and then COVID-19 hit. Subsequent rounds of stimulus legislation and changing tax laws created what Erin Collins, National Taxpayer Advocate, called a “perfect storm.” The result has been significant delays in receiving refunds, communications, and processing, leaving many Atlanta taxpayers frustrated and looking for answers. To help clients, prospects, and others understand what is happening at the IRS, Wilson Lewis has provided a summary of the report details below.
What’s the Problem?
The agency is facing significant challenges across many areas, but the most prominent is the delays in processing tax returns. At the start of 2020, there were more than 8.3M individual tax returns that had yet to be processed, a 1,200% increase over traditional years. Beyond return processing, there are delays in several other departments impacting taxpayers, including;
Why is it Happening?
The National Taxpayer Advocate’s midyear report and TIGTA’s Interim Results of the 2021 Filing Season further discussed specific and somewhat historic issues the agency faced and how these issues contributed to overall performance and response times. The top issues identified include:
Contact Us
The operational issues plaguing the IRS are certainly being felt by Atlanta individuals, businesses, and families. Although the Biden Administration and others are working to resolve these issues, it is likely delays will continue in the immediate future. If you have questions about the information outlined above or need assistance with a tax planning or compliance issue, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.
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