Paper return backlog

[TexTaxToo]

Quotes from yesterday's Taxpayer Advocate blog:

Quote

As of March 18, 2022, the paper return backlog stood at nearly 15 million.

... the IRS still has not implemented technology to machine read them, so each digit on every paper return must be manually keystroked into IRS systems by an employee.

Last year, IRS employees made transcription errors on about 22 percent of paper returns.

https://www.taxpayeradvocate.irs.gov/news/nta-blog-getting-rid-of-the-kryptonite-the-irs-should-quickly-implement-scanning-technology-to-process-paper-tax-returns/

[Yardley CPA]

Do as I say, not as I do.  

[Abby Normal]

Or, and hear me out, the IRS could provide an easy way for people to file simple returns online. I'd bet most people never heard of the free fillable forms system the IRS has.

And for those doing the old pencil and paper, how about a fax number to send it to the IRS? Or maybe make the chain tax services offer a free 'fax your own prepared return' service where you have to present some ID and the return will be high quality faxed to the IRS.

[Lee B]

Now the Commissioner is saying, "The backlog will be cleared up by the end of this year."

[TAXMAN]

Thought: Do we get to the end of the year to clear out our backlog? Without jumping through hoops?

[jklcpa]

2 hours ago, TAXMAN said:

Thought: Do we get to the end of the year to clear out our backlog? Without jumping through hoops?

Maybe we should shred some documents and say we're finished.

https://tenor.com/view/brooklyn99-papers-workpressure-office-workplace-gif-18744235

[Lee B]

A little snippet of IRS History:

Some years ago when the majority of personal tax returns were still paper filed, the IRS would subcontract some of the data entry work out to other businesses.

One of the subcontractors was a large bank in Pittsburgh who got behind and had a significant backlog of unprocessed returns.

Of course the workers were under pressure to increase production.

Some of the low level employees on the late shift solved the problem by shredding over 50,000 unprocessed personal tax returns.

Of course the returns had been logged in and the IRS sent letters to the taxpayers waving penalties and interest, asking them to refile. 

True Story

[TexTaxToo]

I thought perhaps Judy was referring to this TIGTA report from last year:

https://www.treasury.gov/tigta/auditreports/2021reports/202146064fr.pdf

Quote

During our walkthrough of the Ogden Tax Processing Center, we learned that the IRS destroyed paper-filed information return documents. Management subsequently stated they estimated that approximately 30 million documents were destroyed on or around March 19, 2021.

IRS management noted that once the tax year concludes, the information returns, e.g., Forms 1099, can no longer be processed through the Service Center Recognition Imaging Processing System. ... Although IRS management considered maintaining the documents in paper form, they decided against this because retrieval of the documents would be difficult.