After digging out of a daunting backlog from 2021, the agency has an even bigger backup for this tax season than it did a year ago and its pace for processing paper returns is slowing down, according to a watchdog report.
FILE - Internal Revenue Service Commissioner Charles Rettig prepares to testify before the Senate Finance Committee, at the Capitol in Washington, April 7, 2022. A new report from the National Taxpayer Advocate says that taxpayers are experiencing longer wait times on the phone, there’s an even bigger backlog of paper returns than there was a year ago, and delays in processing paper returns have been running six months to one year. WASHINGTON — It’s Groundhog Day at the IRS.
The report on taxpayer challenges, which must be submitted twice a year to Congress, comes one day after the Internal Revenue Service announced that it is on track toThe Objectives Report to Congress contains proposals for lawmakers to consider going forward. She added: “At the end of May, the IRS had a larger backlog of paper tax returns than it did a year ago, and its pace of processing paper tax returns was slowing.”According to the report, at the end of May the agency had a backlog of 21.3 million unprocessed paper tax returns, an increase of 1.3 million over the same time last year. The agency fell short on its goal to bring on 5,473 new employees to process returns, with just 2,056 employees hired.
“That the backlog continues to grow is deeply concerning, primarily because millions of taxpayers have been waiting six months or more to receive their refunds,” Collins said.In a joint letter addressed to Sen. Ron Wyden, D-Ore., who heads the Senate Finance Committee, Treasury Deputy Secretary Wally Adeyemo and IRS Commissioner Chuck Rettig said that roughly six to eight IRS employees manually handle each paper return that is filed.
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