IRS Processing Status

[Lee B]

Figure 1: Status of Unprocessed Paper-Filed Original Tax Returns Comparing Weeks Ending April 22, 2022, and April 22, 2023

Filing Season        Individual        Business        Not Specified        Total

2022                     6,200,000       5,200,000       2,000,000             13,300,000

2023                     1,200,000          500,000          900,000                2,600,000

As of June 3, however, the inventory of unprocessed paper-filed original returns had grown to 4.1 million, consisting of about half individual returns and half business returns.

 

Processing of amended tax returns. In contrast to the 80% reduction in the backlog of paper-filed original tax returns, Figure 2 shows that the inventory of amended returns was 3.6 million in April 2022 and 3.4 million in April 2023, a reduction of only six percent between the two periods.

Figure 2: Status of Unprocessed Amended Tax Returns Comparing Weeks Ending April 22, 2022, and April 22, 2023

Filing Season           Individual          Business           Total

2022                        2,600,000         1,100,000          3,600,000

2023                        1,700,000          1,700,000          3,400,000

 

The IRS has not made notable progress in reducing its paper AM inventories over the past year. The inventory is just six percent lower than at the same time last year.

Figure 3: Status of Unprocessed Taxpayer Correspondence and AM Cases Comparing Weeks Ending April 22, 2022, and April 22, 2023

Filing Season          Individual          Business         Not Specified          Total

2022                       2,200,000         1,000,000       2,100,000                 5,300,000

2023                       1,900,000           900,000        2,200,000                5,000,000

 

Basically the IRS is still playing "Whack a Mole"