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IRS management blamed for tax return backlog

By  Michael Cohn September 21, 2022, 4:22 p.m.   Accounting Today

"Management has not taken steps to either reallocate staff or realign work to address the backlog of tax transcript requests," said the report. "As a result, taxpayers who need these transcripts to validate information for mortgages or apply for student and small business loans will continue to be burdened. In addition, the IRS's mail-processing equipment is 20 years old. Although IRS management previously agreed to take the necessary actions to replace this outdated equipment, as of May 11, 2022, funding has yet to be allocated. Until the funding is allocated and equipment replaced, the federal government will continue to lose millions of dollars in interest revenue. Finally, a strategy is needed to address the delays in processing amended returns, which is not only causing significant burden on taxpayers but also results in the federal government continuing to pay substantial amounts of interest."

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