In the midst of major backlogs, lawmakers are putting pressure on the Irs.

At The Center Square in Washington, D.C. Internal Revenue Service backlogs are being slammed by both Republicans and Democrats.

President Joe Biden’s monthly child tax credit, part of a $1.9 trillion “COVID relief” bill, may be partly to blame for IRS problems. Last year, the IRS was tasked with disbursing federal funds to millions of Americans in accordance with their age and the number of children they were raising.

More than two million unprocessed business returns, six million unprocessed individual returns and two million unprocessed amended returns were found by the National Taxpayer Advocate (NTA) in its federally-commissioned report released in mid-December. According to the findings of the report, the IRS has 4.75 million unprocessed pieces of taxpayer correspondence.The IRS is now predicting more problems this year. In a “urgent reminder” in January, the IRS urged taxpayers to file electronically “to help speed refunds” in preparation for the upcoming tax season.

Last week, IRS Commissioner Charles Rettig wrote an op-ed for Yahoo News in which he echoed this sentiment.

 

“This tax season, the IRS is still dealing with massive challenges. In order to be ready for filing day on April 18, our hardworking employees have done everything they can “he penned. “While preparing for the upcoming tax season, millions of people are still awaiting the processing of their prior year’s returns and the delivery of refund checks in the mail. However, our employees are doing everything they can and I am committed to returning to normal inventory levels by the end of the year.”

In a letter to the IRS, the House Oversight Committee’s Republicans demanded that the bureaucratic issues be addressed. This group of Republicans claimed that the majority of IRS employees can work from home because of “COVID-19 related telework policies” and out-of-date computer software.

A taxpayer’s tax refund “can equal six weeks of take-home income for many Americans,” according to the letter. “Processing delays could have a significant impact on the average American, as evidenced by the large number of tax returns and refunds that are processed each year. Other government benefits, such as loans from the Small Business Administration, can only be obtained if tax returns have been processed. Consequently, the IRS must take steps to minimise delays in processing refunds and access to economic assistance programmes.”

Conservatives, of course, aren’t the only ones who care about this issue. As a member of the Senate Finance Committee, Sen. Bob Menendez of New Jersey, and Rep. Abigail Spanberger of Virginia, co-signed an open letter to the Internal Revenue Service that was signed by 45 members of Congress. In order to fix the issue, they requested that the IRS increase overtime and hire more employees.

“We’re still getting calls from people who haven’t received their 2020 tax returns, who’ve received conflicting notices about past-due payments they’ve already made, and who can’t get through to anyone at the IRS. The letter stated that “taxpayers need more immediate relief, especially with the 2022 filing season already underway,” adding that “millions of unprocessed correspondence items from 2021″ are to blame.”

Additionally, lawmakers have called for “penalty relief” from the IRS and the Treasury Department to help Americans who have received notices for failing to pay their taxes. Even though they paid their taxes, the IRS hasn’t yet processed them.

In January, 214 members of Congress from both parties sent a letter to the Internal Revenue Service and the Treasury Department highlighting the negative impact on small business.

Many small businesses in our communities have been unable to get emergency loans from the Small Business Administration for nearly two years because of the delays in processing amended returns,” the letter stated. “Taxpayer Advocate Service (TAS) will no longer accept cases involving only the processing of amended returns because of the state of affairs. A lack of resources has made it impossible for taxpayers who are fed up to get any assistance.”

ALSO READ:

What Should You Do If the IRS Alerts You to Errors in Letter 6419 Regarding the Child Tax Credit for 2022?

How Do I Track My Australian Tax Returns?

Is it Necessary for My Child to File Taxes? What You Should Know