In a letter released on Wednesday, House Republicans urged the Internal Revenue Service (IRS) to improve its return processing and guarantee that taxpayers receive their refunds “timeously.
“As a result of the COVID-19 “pandemic,” IRS Commissioner Charles Rettig urged taxpayers to disclose the exact tax return amounts in order to minimise delays, according to a letter written by Oversight Committee Ranking Member James Comer, R-Ky, to Rettig on Jan. 22.
Republicans on the House Committee on Oversight and Reform wrote to IRS Commissioner Charles Rettig to obtain details on how the IRS has dealt with the challenges posed by the COVID-19 outbreak and its reliance on out-of-date technologies, such as fax machines, to prepare tax returns.
Americans want their tax returns to be handled quickly and efficiently, even though the IRS is still heavily reliant on decades-old legacy technology systems and the vast majority of its employees telework. People in the United States trust the Internal Revenue Service for quick processing of their taxes. FOX Business inquired about the IRS, but received no immediate response.
Taxpayers will face “enormous challenges” this year, according to the head of the Internal Revenue Service
By the end of 2020, the Internal Revenue Service expects to handle more than 240 million individual tax returns and provide around 122 million refunds. According to Business Insider, the agency’s employee levels have remained the same since the 1970s, despite an increase in demand for services.
According to Business Insider, several legislators have pointed the finger at IRS budget cuts as the cause of the agency’s projected 2021 staffing ratio of one IRS employee per 16,000 phone calls.
According to the Taxpayer Advocate Service (TAS), a division of the Internal Revenue Service, the 2021 filing season would be affected by diminished staff capacity, millions of unprocessed paper returns from 2020, and late-year changes in tax legislation.
“A four-fold rise” in the number of returns that required human processing at the end of the 2019 filing season, according to the TAS, “more than 35 million unprocessed returns” were found at the end of this year’s tax season.
MoneyWise, a financial news website, revealed that the IRS was still claiming to have processed 8.5 million individual tax filings as of September 2021. Individuals and businesses who waited nine months, a year, or longer to receive their refunds found the delays “incomprehensible and in many cases, financially devastating,” TAS said in its study. “Taxpayers will not have to deal with the same issues in the future. Because of the staffing and technological constraints it has faced over the last year, we can no longer allow the agency to function normally. We, as a people, are entitled to better.”
“Those who may be qualified to qualify for other government benefits, such as loans handled by the U.S. Small Business Administration,” wrote the Republicans in their letter.
So the group of representatives wants to know how the IRS processes tax returns electronically and manually; how many tax returns are received each day during tax season; how many IRS employees are currently employed and what their duties are; an assessment of how remote work has affected productivity; and how many employees are currently employed and what their duties are. Specifically, they want to know how many tax returns are received each day during the tax season; how many employees are currently employed; andwhat their duties are.
They want Rettig to meet with his team on these issues no later than February 23.