Senators seek information from IRS on backlog of unprocessed tax returns

A group of U.S. senators is seeking information from the Internal Revenue Service (IRS) about the unprocessed tax return backlog.

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“We write to express our concern about the unprocessed tax return backlog, ongoing customer service challenges, and the effect of Internal Revenue Service (IRS) budget constraints on the agency’s ability to serve taxpayers,” the senators wrote in a letter to IRS Commissioner Charles Rettig. “While the vast majority of taxpayers, who were able to file electronically, received the refunds they were owed, delayed refunds can pose a significant hardship for the millions caught in the backlog.”

The letter was signed by U.S. Sens. Sheldon Whitehouse (D-RI), chair of the Senate Finance Subcommittee on Taxation and IRS Oversight; Ron Wyden (D-OR), chair of the Senate Finance Committee; Mark Warner (D-VA); Elizabeth Warren (D-MA); Robert Menendez (D-NJ); and Sherrod Brown (D-OH).

The National Taxpayer Advocate reported last month that roughly 21.3 million tax returns remain unprocessed, which is 7 percent more than at the same time last year.

In their letter, the senators noted that budgetary cuts and staff shortages – made worse by the COVID-19 pandemic — led to agency-wide delays that have hit millions of Americans and small businesses. Since 2010, Republican-led budget cuts shrunk the agency’s funding by 20 percent even as the number of individual tax filers grew by 19 percent.

The senators are seeking information on agency-wide efforts to speed up IRS operations and requested written answers on how the agency will improve taxpayer services. Additionally, the senators asked Rettig how the IRS could use additional funds to avoid similar delays in the future.