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Tax return backlog remains to be 'crushing the IRS’ — and taxpayers — as pileup exceeds 21 million, company watchdog stories ImpRead

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Tax return backlog remains to be ‘crushing the IRS’ — and taxpayers — as pileup exceeds 21 million, company watchdog stories

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IRS Commissioner Chuck Rettig testifies earlier than the Senate Finance Committee on April 7, 2022.

Kevin Dietsch | Getty Images News | Getty Images

The IRS backlog of tax returns has swelled over the previous 12 months, regardless of efforts to clear the pileup, in response to an company watchdog.

There have been 21.3 million unprocessed paper returns as of May 31, up from 20 million one 12 months prior, the Taxpayer Advocate Service shared in its mid-year report back to Congress.

“Unfortunately, at this point the backlog is still crushing the IRS, its employees and, most importantly, taxpayers,” wrote National Taxpayer Advocate Erin Collins, who leads the impartial group throughout the IRS.

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“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 added.

While greater than 90% of taxpayers filed returns electronically final 12 months, roughly 17 million despatched paper filings, contributing to the backlog.

Over the previous 12 months, refund delays for some paper-filed returns have exceeded six months, with many ready 10 months or extra, in response to the report.

Watchdog shares ‘missed alternatives’ for IRS

The report additionally highlights “missed opportunities” for the company over the previous 12 months after figuring out points with paper returns.

“Had the IRS taken steps a year ago to reassign current employees to processing functions, it could have reduced the inventory backlog carried into this filing season and accelerated the payment of refunds to millions of taxpayers,” Collins wrote.

Over the previous 12 months, the company could have boosted effectivity with new scanning expertise, or moved sooner to make use of a part of the $1.5 billion funding from the American Rescue Plan of 2021 to rent new staff, the report stated.

CNBC has reached out to the IRS for remark.

IRS plans to rent extra staff

The company in March shared plans to rent 10,000 staff, beginning with 5,000 new staff. However, the IRS hadn’t but achieved half of the 5,000-worker headcount in May, in response to Ken Corbin, the company’s chief taxpayer expertise officer.

“We remain focused on doing everything possible to expedite processing of these tax returns, and we continue to add more people to this effort as our hiring efforts continue this summer,” IRS Commissioner Chuck Rettig stated in a press launch this week.

As of June 10, the IRS had processed round 4.5 million of the greater than 4.7 million particular person paper returns from 2021, and the company expects to finish error-free particular person filings from 2021 this week.

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