IRS BACKLOG UPDATE

[Lee B]

The IRS says it will be caught up with all 2020 and earlier personal tax returns soon,

with 2020 business tax returns shortly thereafter:

https://www.irs.gov/newsroom/irs-continues-work-on-inventory-of-tax-returns-original-tax-returns-filed-in-2021-to-be-completed-this-week

Also:

2.1 Million unprocessed Form 1040-X

3.7 Million unprocessed Form 941

215,000 unprocessed Form 941 X

[Lion EA]

Our tax dollars at work -- NOT.

[Catherine]

19 hours ago, Lion EA said:

Our tax dollars at work -- NOT.

Our tax dollars at play?

[Lee B]

Correspondence Processing Delays

When a taxpayer receives a notice and is requested to respond or chooses to respond, the taxpayer must generally do so by mail. Through May 21, the IRS processed 5million taxpayer responses to proposed adjustments. It took an average of 251 days to do so – more than eight months. That is more than triple the processing time of 74 days in fiscal year 2019, the most recent pre-pandemic year. “When a math error or similar notice is generated in connection with a paper-filed tax return,” the report says, “the combination of the return processing delay and the correspondence processing delay may mean that the taxpayer must wait well over a year to get the issue resolved and receive the refund due.

Well the CP 2000 that I replied to back in December is still outstanding.

[Donnarae]

And now they will be handling millions of responses to letters they sent for non-payment of taxes owed. I’m having every  client print the proof of payment from the IRS website and respond by mail. 
Bwaaaaa 

[Catherine]

On 6/22/2022 at 9:29 PM, Donnarae said:

And now they will be handling millions of responses to letters they sent for non-payment of taxes owed. I’m having every  client print the proof of payment from the IRS website and respond by mail. 
Bwaaaaa 

Doing the same here. Send that proof of payment by mail. 

One client who made payment (for amended return; unexpected K-1 received late) included check for a couple bucks of post-4/15 interest.