Subcommittee on Government Operations Ranking Member Jody Hice (R-GA) and U.S. Rep. Andrew Clyde (R-GA) are seeking answers from the Internal Revenue Service (IRS) regarding backlogs impacting SBA loan applications.
The legislators forwarded correspondence to Internal Revenue Service (IRS) Commissioner Charles Rettig related to the agency backlog and its impact on those applying for Economic Injury Disaster Loans (EIDL) through the Small Business Administration.
“Small businesses are the lifeblood of our economy, employing roughly half of American workers,” Hice said. “The IRS, however, is severely handicapping small businesses seeking assistance through Economic Injury Disaster Loans. Congress approved funding for this emergency aid months ago, but massive IRS delays are preventing many employers from obtaining the documentation needed to even apply. It is absolutely imperative that the IRS addresses these shortfalls and assures the American people that this backlog is finally going to be addressed.”
The legislators indicated to receive an EIDL loan, applicants are required to submit tax transcripts and other information. IRS delays in obtaining necessary documents are preventing or slowing the process of pursuing the loans.
Hice and Clyde have requested an IRS briefing as a means of informing Congress about agency plans to process taxpayer requests, particularly those made by small businesses in need of documentation proving EIDL eligibility.
“IRS backlogs are getting in the way for America to start recovering from this pandemic, especially for our small businesses who are trying to get Economic Injury Disaster Loans,” Clyde said. “The IRS owes us answers and solutions to this backlog. Their failure will simply keep America’s pandemic recovery on ice. Georgians need action now.”