The IRS backlog of unprocessed tax returns has grown to 21 million.


WASHINGTON – The backlog of tax returns on the Internal Revenue Service has grown to greater than 20 million within the final 12 months regardless of efforts by the Biden administration to course of filings and ship out refunds extra rapidly, the nationwide taxpayer advocate mentioned in a report printed on Wednesday .

The report affords a important evaluation of the Biden administration’s dealing with of the IRS, which has been burdened by staffing and funding shortages in recent times whereas taking up the accountability of delivering financial aid cash in the course of the pandemic.

The tax company’s impartial watchdog mentioned the IRS was sluggish to use aid funds that it obtained as half of the 9 1.9 trillion stimulus package deal that Congress handed in March 2021. It mentioned the company ought to have moved extra rapidly to ramp up hiring, reassign workers and make expertise modifications that would have eased the backlog.


“That backlog continues to develop is deeply regarding, primarily as a result of tens of millions of taxpayers have been ready six months or extra to obtain their refunds,” Erin M. Collins, the nationwide taxpayer advocate, wrote within the report.


A 12 months in the past, the IRS had 20 million unprocessed tax returns. That backlog has grown to 21.3 million as of the final week of May.

The IRS disputed the taxpayer advocate’s findings and mentioned that more moderen information, via June 10, confirmed unprocessed returns had dipped beneath 20 million and have been down barely from June 2021.

“The IRS is dedicated to having wholesome inventories by the tip of this 12 months and continues to make sturdy progress dealing with unprocessed tax returns,” Jodie Reynolds, an IRS consultant, mentioned in an announcement.

Paper tax returns proceed to bathroom down the IRS because the paperwork have to be manually transcribed into its antiquated laptop techniques.


Communication can be a significant impediment, Ms. Collins mentioned, with taxpayers in search of to attain prospects service brokers on the phone ready on maintain for a mean of 29 minutes. Just 10 % of the 73 million calls that the IRS obtained have been answered by an agent. On each counts, these metrics are worse than final 12 months.


The Biden administration has been calling for extra assets for the IRS and requested for $ 80 billion over a decade to overhaul its expertise and bolster its workers. Democrats have blamed the company’s issues on Republicans, who’ve lengthy tried to starve it of funding and accused it of political bias towards conservatives.

The Treasury Department, which oversees the IRS, mentioned on Tuesday that the company expects to end processing all particular person tax returns with out errors that have been obtained final 12 months, with enterprise returns filed in 2021 accomplished “shortly thereafter.” A senior Treasury official famous that the IRS had already been stepping up hiring and had diverted workers to assist clear the backlog.

The IRS has struggled to rent workers even when it has the funding to achieve this. The report famous that the company set a objective of hiring 5,473 individuals in its submission processing services this 12 months however has solely employed 2,056 thus far.

For taxpayers, the dysfunction on the IRS has led to mounting frustration as they await refunds at a time of hovering inflation.

Ms. Collins estimated that 9 million taxpayers are experiencing refund delays. More than 300,000 who’ve been victims of id theft may have to wait at the very least a 12 months.

The taxpayer advocate steered that the IRS work to automate the processing of paper tax returns and make it simpler for taxpayers to file electronically. Ensuring that telephones are answered must also be a precedence.

“If a non-public firm failed to reply 9 out of 10 buyer calls, prospects would go elsewhere,” she mentioned. Collins mentioned. “That, of course, isn’t an choice for US taxpayers, so it’s important that the IRS enhance staffing in its phone name facilities to deal with the quantity of calls it receives.”

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