The IRS Has a Backlog of Nearly 24 Million Tax Forms

 

The nation’s revenue service is facing a backlog of nearly 24 million tax returns filed last year, according to a report in The Washington Post. The pileup is delaying the processing of returns for millions of taxpayers by as much as 10 months, and is expected to slow the processing of returns filed in 2022 as well.

The latest tally, which is considerably larger than the 10 million reported earlier this year, was recently provided to Congress by the taxpayer advocate service at the IRS. Officials at the IRS told the Post that the agency, hobbled by the coronavirus pandemic and struggling with an increased workload that includes processing Covid relief payments, is having trouble hiring and training new employees to help clear the backlog.

A group of Republican senators sent a letter last week to Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig expressing their concern about the situation, calling it “untenable.” They suggested ways to address the backlog, including halting the issuance of liens, providing tax penalty relief and expediting the processing of forms.

The IRS has announced that it is considering suspending some tax enforcement and would be forming a 1,200-strong “surge team” to focus on the backlog. But Rep. Richard Neal (D-MA), chair of the House Ways and Means Committee, said over the weekend that the agency needs more money and that the dire situation at the IRS is the result of a long campaign against the agency by Republicans in Congress, who continue to lobby against providing sufficient funding. “For decades, Republicans have starved the IRS of funding, and now American taxpayers are paying the price,” Neal said. “The backlog of tax returns is but one symptom of the fundamental issue that has been ailing the IRS for too long: inadequate resources.”

By the numbers: The IRS said the backlog consists of 23.7 million returns that require individual processing. According to the Post, the total includes 9.7 million paper returns that need to be reviewed by hand; 4.1 million returns that have been flagged because of issues related to Covid relief payments; 4.1 million returns that have been amended and must be reviewed; and 5.8 million letters that need to be addressed before related returns can be completed.

“This entire ecosystem of pending cases gives the public a fuller picture of what the IRS is up against,” Chad Hooper, executive director of the nonprofit Professional Managers Association, which represents managers in the federal government, told the Post. “And it’s a crazy number before most people have filed their taxes for this year.”

 
Trending Ideas

Featured Stocks On The Move

Daily Rundown
  • Sportswear, Blockchain, Medical, E-commerce

    On Holding AG (ONON) On Holding AG is a premium sportswear company specializing in high-performance running shoes and apparel. Known for its innovative cushioning technology, the company caters to athletes... Read More

  • Chemicals, Venture, Energy, Insurance

    Flexible Solutions International Inc. (FSI) Flexible Solutions International Inc. develops and manufactures biodegradable and environmentally safe chemicals. The company specializes in water and energy conservation products, serving industries like agriculture... Read More

  • Data, Blockchain, Education, Semiconductors

    LiveRamp Holdings, Inc. (RAMP) LiveRamp Holdings, Inc. specializes in data connectivity and analytics, helping businesses unify customer data for personalized marketing strategies. Its platform enables secure data sharing and drives... Read More

  • Services, Renewable, Batteries, Midstream

    Ranger Energy Services, Inc. (RNGR) Ranger Energy Services, Inc. provides well service solutions to the oil and gas industry. The company specializes in high-spec rigs, well maintenance, and completion services,... Read More

  • Analytics, Manufacturing, Appliances, Energy

    ExlService Holdings, Inc. (EXLS) ExlService Holdings, Inc. is a leading provider of data analytics and digital operations solutions. The company helps businesses enhance decision-making, streamline operations, and achieve transformative growth... Read More

  • Wellness, Energy, Construction, Exploration

    LifeVantage Corporation (LFVN) LifeVantage Corporation is a wellness company focusing on nutrigenomics to improve health and longevity. It offers science-backed dietary supplements and skincare products aimed at optimizing health and... Read More

  • Housing, Biotech, Technology, E-commerce

    Fannie Mae (FNMA) Fannie Mae provides liquidity and stability to the U.S. housing market by purchasing mortgages from lenders, enabling them to offer more loans. The company plays a critical... Read More

  • Aviation, Medical, Biotech, Biopharmaceutical

    FTAI Aviation Ltd. (FTAI) FTAI Aviation Ltd. specializes in acquiring, leasing, and managing aviation assets, including aircraft and engines. The company provides innovative solutions to airlines and operators, optimizing performance... Read More



Top 3 Stocks in Leading Sectors
  • 3 Technology Stocks To Buy Now

    BTC Digital Ltd. (BTCT) BTC Digital Ltd. is engaged in cryptocurrency mining and blockchain technology development. The company leverages advanced infrastructure to produce digital assets and support the growth of... Read More

  • 3 Distribution Stocks To Buy Now

    DNOW Inc. (DNOW) DNOW Inc. is a leading distributor of energy and industrial products, offering supply chain solutions and services. Serving oil, gas, and industrial sectors, the company ensures operational... Read More

  • 3 Energy Stocks To Buy Now

    EQT Corporation (EQT) EQT Corporation is a leading natural gas producer, operating in the Appalachian Basin. The company leverages advanced technologies to optimize energy production and deliver sustainable solutions to... Read More

  • 3 Consumer Stocks To Buy Now

    Playa Hotels & Resorts N.V. (PLYA) Playa Hotels & Resorts N.V. owns and operates all-inclusive beachfront resorts in prime locations across the Caribbean and Mexico. The company offers luxurious accommodations,... Read More

  • 3 Aviation Stocks To Buy Now

    Kratos Defense & Security Solutions, Inc. (KTOS) Kratos Defense & Security Solutions, Inc. specializes in developing and deploying advanced defense technologies, including unmanned systems, satellite communications, and cybersecurity solutions. The... Read More

  • 3 Apparel Stocks To Buy Now

    V.F. Corporation (VFC) V.F. Corporation is a global leader in branded lifestyle apparel, footwear, and accessories. With a diverse portfolio of iconic brands like Vans, The North Face, and Timberland,... Read More

  • 3 Defense Stocks To Buy Now

    FTAI Aviation Ltd. (FTAI) FTAI Aviation Ltd. focuses on acquiring, leasing, and managing aviation-related assets, such as aircraft and engines. The company provides tailored solutions to airlines and operators, ensuring... Read More

  • 3 Energy Stocks To Buy Now

    Antero Resources Corporation (AR) Antero Resources Corporation is a leading natural gas and liquids exploration and production company. Operating primarily in the Appalachian Basin, the company focuses on responsible energy... Read More