Many taxpayers are experiencing some level of difficulty related to their Federal Income Tax filings this summer. Refunds delayed, erroneous notices received, payments applied incorrectly; these are some of the most common problems that seem to be occurring. Adding to this frustration are the news reports where public praise is heaped upon the IRS by Secretary Yellen and Commissioner Rettig’s public statements of “being all caught up” – when that is so obviously not the case. Problems persist in many areas across the IRS landscape.

In my own personal observations, issues such as payments being applied wrong, returns being ‘lost’ by the IRS and a letter requesting a replacement be sent, and refund delays for no apparent reason are relatively commonplace. This is disappointing – as much as I have enjoyed picking on the IRS over my 30+ years in practice, I generally could rely on them processing things accurately and being responsive when something did go wrong. Now, phone calls to the IRS are nearly impossible and written correspondence is not being processed in anything resembling a timely manner.

Recent reports indicate that there are as many as 35 million returns currently unprocessed (at least in early July that was the number), some of which are from 2019. These returns simply require some human interaction to clear an edit code or something similar – it is no indication that there is an actual error or other problem. Similarly, we have seen recent reports that there are as many as 70 tractor-trailer loads of mail at the Ogden, UT service center – where most of the Western United States files there returns. There are likely several notice responses that I’ve drafted in that stack of mail. The situation is not good, and it shows no real sign of improving in the near term.

One item is clear – no matter how much we may all dislike the IRS, the pandemic has highlighted the need for them to function properly. They may have been very successful at processing the stimulus payments, and no doubt that was a priority.

However, it’s also imperative that the IRS and Treasury can accurately and in a timely manner process the tax filings of the citizens. Continued failure to do so will destroy an already tenuous public confidence in the IRS. Congress needs to approve funding for the IRS, and I encourage everyone who is having any issues at all with delayed refunds or no responses to notices to contact their representatives in Washington and let them know what you are experiencing. They need to be aware of our side and hear from taxpayer constituents instead of political appointees.